Consider two countries—A and B. Both the countries are identical except for the fact that institutions are extractive in country A and institutions are inclusive in country B
Given this information, which of the following statements will be true?
A) Country A will be characterized by higher output and larger number of entrepreneurs than country B.
B) Country A will be characterized by lower output but larger number of entrepreneurs than country B.
C) Country A will be characterized by lower output and smaller number of entrepreneurs than country B.
D) Country A will be characterized by higher output but lower number of entrepreneurs than country B.
C
You might also like to view...
Honduras is an importer of goose-down pillows. The world price of these pillows is $50 . Honduras imposes a $7 tariff on pillows. Honduras is a price-taker in the pillow market. As a result of the tariff, the price of goose-down pillows in Honduras
a. remains at $50 and the quantity of goose-down pillows purchased in Honduras decreases. b. increases to $57 and the quantity of goose-down pillows purchased in Honduras decreases. c. increases to a new price between $50 and $57 and the quantity of goose-down pillows purchased in Honduras decreases. d. increases to a new price above $57 and the quantity of goose-down pillows purchased in Honduras remains the same.
The aggregate-demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product. b. is vertical in the long run. c. shows an inverse relation between the price level and the quantity of all goods and services demanded. d. All of the above are correct.
Initially, the reserve ratio is 10 percent. Now banks decide they want an additional 10 percent of deposits as reserves. There are no currency drains. If the Fed buys $1 million of U.S. government securities, the money supply will
A. increase by $10 million. B. increase by $5 million. C. not change because of the excess reserves banks keep on hand. D. increase by $1 million.
________ is an industry with a single firm in which the entry of new firms is blocked.
A. An oligopoly B. A monopoly C. Monopolistic competition D. Perfect competition