Nations with low levels of GDP per capita may converge to richer nations if
A) nations with high levels of income experience a continuously increasing growth rate.
B) nations with lower levels of income grow more quickly than those with higher levels of income.
C) nations with lower levels of income grow more slowly than those with higher levels of income.
D) nations with lower levels of income spend less on investment.
B
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Government purchases in national income accounts would include payments for ________.
A. unemployment benefits B. salaries for current U.S. military officers C. public assistance for welfare recipients D. Social Security checks to retirees
Given the demand curve in Figure 5-24, explain how consumer’s surplus is calculated.
What will be an ideal response?
If a negative externality exists in the market for dirt bikes and that market is perfectly competitive:
A. less than the efficient output of dirt bikes will be produced. B. the price of dirt bikes equals the marginal social cost. C. the price of dirt bikes is less than the marginal social cost. D. the price of dirt bikes exceeds the marginal social cost.
The median-voter model implies that a political office seeker will:
A. adopt more extreme views when seeking his or her party's nomination than when running against the other party's opponent. B. adopt less extreme views when seeking his or her party's nomination than when running against the other party's opponent. C. favor extensive government spending because demand curves for public goods are added vertically rather than horizontally. D. favor the private resolution of externality problems rather than governmental intervention.