When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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A "brain drain" is
A. the impact of malnutrition on education and productivity in developing countries. B. the tendency of workers in developing countries to reject new technologies. C. the tendency of talented people in developing countries to get education in developed countries and to stay there after graduation. D. the impact of poverty on the productivity of workers in developing countries.
Political creative destruction:
A) is likely to hamper the ruling government in an economy with inclusive institutions. B) leads to losses of all economic agents. C) leads to the benefit of all economic agents. D) is likely to adversely affect the ruling government in an economy with extractive institutions.
Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.
a. true b. false
Costs that are borne solely by the individuals who incur them are
A) private costs. B) social costs. C) external costs. D) transaction costs.