The "vicious circle of poverty" for developing nations can best be described by:
A. Low levels of international trade that reduce exports and increase the dependence on imports
B. Low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income
C. A large government sector which reduces the availability of private investment spending but which increases macroeconomic stability
D. A lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses
B. Low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income
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In the context of rent seeking, rents refer to _____
a. payments made to factors of production for private benefit that do not add anything to social output. b. payments made to politicians for private benefit that do not add anything to gross domestic product c. payments made to factors of production for private benefit that add to social output d. payments made to third parties to find opportunities for lobbying
The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?
a. 5. b. ?12. c. 12. d. 35. e. 50.
If the rivers, lakes and air in the United States could all be privately owned, then: a. there would be less pollution
b. costs of production for many firms would rise. c. externalities would be internalized. d. all of the above are correct.
If firms sell less than is expected, actual investment increases because ________, which is counted as investment.
A. the government buys the unsold goods B. households buy the unsold goods are bargain prices C. the unsold goods are distributed to poor households D. the unsold goods are added to inventory