Define what dead capital is and why economists are concerned with its existence
What will be an ideal response?
Dead capital is when capital resources lack a clear title of ownership. Dead capital is a concern because it can lead to a reduction in investment and economic growth in developing nations. Dead capital will lead to a reduction in investment if the investors can not count on having clear ownership of their capital. Dead capital will lead to a reduction in economic growth because resources cannot be put to their most efficient use.
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Fiat money refers to a monetary system in which gold backs up paper money
Indicate whether the statement is true or false
The United States will always have unemployment
a. True b. False
Three gas stations are located at different corners of a busy intersection. Kelly manages one of them, and he notices that when he raises his gas prices, the other stations don't follow suit, but that when he cuts his gas prices, his competitors follow. What does demand for Kelly's gas look like, and how should he respond to a change in the wholesale price of gasoline?
On a production possibilities curve, the single optimal or best combination of output for any society:
A. Is at a point near the top of the curve B. Is at the precise midpoint of the curve C. Is at a point near the bottom of the curve D. Depends upon the preferences of society