Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?
a. The poor country has a health epidemic such as the Zika virus
b. The poor country imposes heavy tariffs to protect infant industries
c. The poor country has many corrupt officials
d. All of the above
d
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Observers of the economy often complain that indicators of economic activity are often contradictory. This is an example of the ________ lag
A) data B) recognition C) legislative D) effectiveness
Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?
A) -1.7273 B) -1.1176 C) -0.8947 D) +1.7273
Why is oligopoly more difficult to model than competition or monopoly?
What will be an ideal response?
The Eye of Horus incense company has $10 million in cash which it has accumulated from retained earnings. It was planning to use the money to build a new factory. Recently, the rate of interest has increased. The increase in the rate of interest should
a. not influence the decision to build the factory because The Eye of Horus doesn't have to borrow any money. b. not influence the decision to build the factory because its stockholders are expecting a new factory. c. make it more likely that The Eye of Horus will build the factory because a higher interest rate will make the factory more valuable. d. make it less likely that The Eye of Horus will build the factory because the opportunity cost of the $10 million is now higher.