Which of the following would be most likely to encourage capital formation in a less-developed country?
a. the expectation of sustained high inflation
b. the expectation that property rights will be highly secure in the years ahead
c. the imposition of high tariffs and other restraints limiting imports
d. higher personal and corporate tax rates
B
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In the coordination failure model, a rightward shift in the labor supply curve
A) increases the real wage and increases employment. B) increases the real wage and decreases employment. C) decreases the real wage and increases employment. D) decreases the real wage and decreases employment.
Economic models
a. are always based on realistic assumptions. b. usually predict perfectly. c. can never be tested with real world data. d. are used to describe cause-and-effect relationships. e. are too simple to be of much use.
An income distribution may not give an accurate picture of the standard of living for the poor because it does not include in-kind transfers
a. True b. False Indicate whether the statement is true or false
As the total quantity of land is fixed the payment for land is termed as economic rent
a. True b. False Indicate whether the statement is true or false