Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country.
B. creates cultural and social differences among groups in developing countries.
C. produces excessive levels of domestic saving.
D. redistributes income.
Answer: A
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The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit
Indicate whether the statement is true or false
In which country is the central bank more independent than the Federal Reserve?
A) Germany B) Japan C) Great Britain D) All of the above.
If the United States threatens to impose a tariff on Honduran blueberries if Honduras does not remove agricultural subsidies, the United States will be
a. better off no matter how Honduras responds. b. better off if Honduras gives in, and will be no worse off if it doesn't. c. worse off if Honduras doesn't give in to the threat. d. worse off no matter how Honduras responds.
(Last Word) In response to the Great Recession, Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks. While this was done to help workers financially and to help the economy by stimulating demand, it had what
unintended consequence? A. It significantly increased the rate of inflation. B. It drove the unemployment rate lower than the lowest prerecession rate. C. It encouraged millions of unemployed workers to return to school, driving up projected future rates of labor productivity. D. It prompted inefficiently long searches that kept the unemployment rate higher.