Which of the following statements is true of the number of entrepreneurs in an economy?
A) The number of entrepreneurs is likely to be higher in an economy with inclusive institutions than in an economy with extractive institutions.
B) The number of entrepreneurs is likely to be higher in a command economy than in a market economy.
C) The number of entrepreneurs is likely to be the same in an economy with inclusive institutions and an economy with extractive institutions.
D) The number of entrepreneurs is likely to be the same in a command economy and a market economy.
A
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________ protection, similar to the escape clause in U.S. law, refers to temporary protection given to local industries facing competition from fairly traded foreign products
A) Safeguards B) Countervailing duty C) Fair trade D) Competitive trade
Which of the following is true of the segmented markets theory?
A) It assumes that borrowers have particular periods for which they want to borrow. B) It assumes that lenders always lend for short periods. C) It provides a good explanation for why yield curves usually slope upward. D) It assumes that instruments with different maturities are perfect substitutes.
The exchange efficiency condition holds:
A. if every pair of individuals has inverse marginal rates of substitution for every pair of goods. B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods. C. if every pair of individuals consumes the same quantities of every pair of goods. D. if every pair of individuals have the same level of utility.
When consumers are less confident about their jobs or incomes, they are more likely to
A) reduce purchases of durable goods than nondurable goods. B) reduce purchases of nondurable goods and increase purchases of durable goods. C) increase investment spending and decrease consumption spending. D) increase consumption spending and decrease investment spending.