If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.
A. restricts; a lesser
B. restricts; no
C. increases; a greater
D. restricts; a greater
Answer: D
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Stagflation is a combination of ________ real GDP and a ________ price level
A) decreasing; falling B) decreasing; rising C) increasing; rising D) no change in; rising E) increasing; falling
How is the market demand curve for a public good derived?
What will be an ideal response?
Which of the following events would definitely cause a decrease in the equilibrium price of cotton shirts?
a. An increase in the price of wool shirts and a decrease in the price of raw cotton. b. A decrease in the price of wool shirts and a decrease in the price of raw cotton. c. An increase in the price of wool shirts and an increase in the price of raw cotton. d. A decrease in the price of wool shirts and an increase in the price of raw cotton.
What is the principal-agent problem?
A) It is a problem caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way. B) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them. C) It is a problem of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. D) It is a problem that exists when a person (principal) has more information about the task than the agent he hires to perform the task.