If an economy with extractive institutions allows for political creative destruction:
A) poverty in the economy is likely to increase.
B) the growth rate of the economy is likely to decrease.
C) new leaders are likely to replace old leaders.
D) innovation in the economy is likely to decrease.
C
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Answer the next question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Which of the following is true?
A. For the West region, the cost of 5 units of clothing is 10 units of food. B. For the East region, the cost of 8 units of food is 8 units of clothing. C. For the West region, the cost of 15 units of food is 5 units of clothing. D. For the East region, the cost of 4 units of clothing is 6 units of food.
Individuals conscripted into military service _____
a. are forced to work for less than the market wage b. bear a heavy tax burden c. are not necessarily those with a comparative advantage in being a soldier d. all of the above
A multiplant firm has equated marginal costs at each plant. By doing this
A) profits are maximized. B) costs are minimized given the level of output. C) revenues are maximized given the level of output. D) none of the above
Using Table 6.1, were there to have been deflation during this time period, you would have seen 
A. a stationary CPI. B. a more rapid rate of increase in the CPI. C. a slower rate of increase in the CPI. D. a decrease in the CPI.