The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will
a. fall temporarily, but will return to where it was when the new owners learn how to farm.
b. increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
c. fall and remain lower for a long time.
d. not be affected unless widespread civil disorder or civil war results.
c
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Suppose that a consumer is at an optimum consuming X and Y. If the price of X falls, then to get to a new equilibrium the consumer must
A) purchase less X and more Y. B) purchase less Y and less X. C) purchase more X. D) purchase more Y.
MSB equals
A) MC + the marginal external cost. B) MC + the marginal external benefit. C) MB + the marginal external cost. D) MB + the marginal external benefit. E) MB + MC.
One target of the UN Millennium Development Goals that has successfully been reached involved cutting in half the number of people who lack access to
a. public education. b. information technology. c. international trade. d. safe drinking water.
If the price of labor is constant and a firm experiences diminishing marginal product, then its
A. average variable cost increases. B. fixed costs increase. C. marginal costs decrease. D. total costs decrease.