The big-push strategy, if successful, triggers
a. capital flight
b. a cluster of interrelated investments
c. an entrepreneurial surge in the economy
d. forward linkage
e. arbitrage
B
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Comment on the following statement: "When a negative externality is present, and a firm does not factor the additional social cost into its decisions, the firm is likely to produce a level of output that is lower than the efficient level."
What will be an ideal response?
Crowding out would not occur if the
A) IS curve is horizontal. B) IS curve is vertical. C) LM curve is horizontal. D) LM curve is vertical
The per capita real GDP is the
A) rate of growth in real GDP plus the population growth rate. B) real GDP divided by the population. C) rate of growth in real GDP times the population growth rate. D) rate of growth in real GDP minus the population growth rate.
A country's production possibilities will grow if it
a. produces more guns than butter. b. lowers its opportunity costs. c. makes more trade-offs. d. increases its resources.