A successful market economy requires
A) a government-controlled banking system and government price controls.
B) well-defined property rights and an independent court system to adjudicate disputes based on the law.
C) generous unemployment benefits and paid medical leave for everyone in the labor force.
D) an equitable distribution of income and limits on immigration.
Answer: B
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From the figure below, please provide an explanation for the large decline in the growth rate of international reserves held by developing countries in the 2008-2009 period
What will be an ideal response?
When current account deficits are used to finance investment spending, such deficits may be self-correcting because
A) they promote more responsible government policies. B) the resulting increase in the capital stock over time shifts the output supply curve to the right. C) the resulting increase in the capital stock over time shifts the output demand curve to the right. D) the resulting increase in national indebtedness increases labor demand.
In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?
a. goods and services b. dollars paid to land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit
When equilibrium GDP is below potential GDP, jobs are plentiful and unemployment is low.
Answer the following statement true (T) or false (F)