Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should
a. lend support to the invisible hand by maintaining property rights and political stability.
b. limit foreign investment to industries that don't already exist in the country.
c. impose trade restrictions to protect the interests of domestic producers and consumers.
d. subsidize key industries.
a
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Jennifer owns a pig farm near Salina, Kansas. Last year she earned $39,000 in total revenue while incurring $38,000 in explicit costs. She could have earned $27,000 as a teacher in Salina. These are all her revenue and costs
Therefore Jennifer earned an A) accounting profit of $1,000 but incurred an economic loss of $26,000. B) accounting profit of $1,000 but incurred an economic loss of $65,000. C) accounting profit of $1,000 but incurred an economic loss of $38,000. D) economic profit of $1,000. E) None of the above answers is correct.
If a country's income grows at the rate of 5 percent a year, it doubles in about
A) eight years. B) six and one-half years. C) ten years. D) fourteen and one-half years. E) twenty years.
Income elasticity relates to
A) a movement down a demand curve. B) a movement up a demand curve. C) a horizontal shift in a demand curve. D) the percentage change in quantity demanded divided by the percentage change in the price.
In the absence of an even-handed legal system, high transaction costs will eliminate many potential mutally advantageous trades and the accompanying gains from
What will be an ideal response?