The possibility of immiserizing growth can arise when
A. the terms of trade of a small country decline due to changes in the rest of the world.
B. the import-competing goods are overproduced in a large country.
C. there is a decline in the research and development investments in a large country.
D. a large country expands the production of its export-oriented goods.
Answer: D
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Consider a competitive constant-cost industry in which each firm's marginal and average costs are given by the formulas MC = 4q and AC = 2q + 50/q , where q represents the quantity supplied by the firm.
(i) Determine the quantity supplied by each firm in long-run equilibrium, and determine the firms' break-even price. (ii) Suppose the market demand for the good produced by this industry is given by the formula P = 320 - 2Q, where P is the market price and Q is the market quantity. If the industry is in a long-run competitive equilibrium, what will be the market price and quantity, and how many firms will be in the industry?
Explain how elections in countries with democratic political institutions can place controls on corruption
What will be an ideal response?
If a country grows at an average rate of 5 % per year over a 5 year period, then its compounded growth rate over that period is roughly:
A. 27.6 %. B. 35.0 %. C. 32.7 %. D. 20.5 %.
An industry is said to be a natural monopoly when:
A. legal barriers limit entry into the market. B. diseconomies of scale are present in the market. C. the market demand for the product supplied by a firm is inelastic. D. long-run average cost continues to decline as the quantity of output increases.