Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to
A) tax too heavily.
B) regulate too heavily.
C) print money to finance policies to stimulate the economy.
D) keep out foreign competition.
E) use industrial policies to foster growth.
C
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Refer to the figure above. Which of the following statements are true in this case?
A) P1 is the socially optimal price for Good X. B) P2 is the price of Good X in a free market. C) Q2 is the efficient level of output of Good X. D) Q2 is the quantity supplied of Good X in a free market.
Reform of a country's trading system, including the reduction or elimination of trade barriers, is an example of
A) an orthodox stabilization plan. B) a heterodox stabilization plan. C) economic populism. D) import substitution industrialization. E) structural reform.
For a country to acquire more physical capital it:
A. must forgo current consumption. B. faces the investment trade-off. C. must pay for the investment by reducing current consumption. D. All of these are true.
The marginal product of labor is
a. the average number of units produced by each worker. b. the additional output produced when another worker is hired. c. a worker's weekly production. d. the total number of units each worker is capable of producing.