If the geography hypothesis holds, what will be its implication on poorer nations that have unfavorable geographic conditions?
What will be an ideal response?
The geography hypothesis states that the geography of a nation is the fundamental cause of prosperity or its absence. Since the geography of a nation does not change over time, nations that have unfavorable geographic conditions cannot expect to improve their living standards. They are permanently disadvantaged and cannot be expected to catch up with the rest of the world.
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The main policy making body of the Federal Reserve System is the
A) Federal Monetary Conditions Board. B) Board of Presidents of the Federal Reserve Banks. C) Board of Governors of the Federal Reserve System. D) Federal Open Market Committee. E) Board of Advisors.
If government uses a pollution tax to control pollution, the tax should be set
A) equal to the private cost of production created by the activity. B) equal to the external cost of production created by the activity. C) equal to the social cost of production created by the activity. D) at the amount that will eliminate the pollution completely.
With inflation of 5 percent, real GDP growth of 3 percent, and an outstanding national debt of $3400 billion, the "allowable deficit" that holds the debt-GDP ratio constant is
A) $272 billion. B) $68 billion. C) $170 billion. D) $175.1 billion. E) $510 billion.
Using the above table, at a price of $5 there will be a
A) shortage of 20 units. B) shortage of 10 units. C) surplus of 20 units. D) surplus of 10 units.