What is social capital, and how is it connected to economic development?
What will be an ideal response?
Social capital refers to those formal and informal institutions that permit a people to live in an atmosphere of trust and security. Without it, long-term investments in economic development may be impossible.
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During the 2000s, the Federal government's deficit
a. moved from large deficits to even larger deficits. b. changed little as a percent of GDP. c. moved from large surpluses to large deficits. d. rose largely as a result of large tax cuts in 2001 and 2004. e. both c and d.
Assuming that the demand and supply of a good have moved in the same direction, and by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.
What role does ideology play in the debate on stabilization?
A. A large role because there are conservative and liberal economists. B. A primary role because there are no economic aspects to the debate at all. C. A minor role because economists are fairly uniform in their political views. D. No role at all because this is purely a technical question.
Firms report that their workers are working six hours of overtime per week. The government reports that the unemployment rate is 3.5%. In this situation, the multiplier is likely to be
A. large. B. negative. C. small. D. infinitely large.