An In the News article is titled "Where Do Start-ups Get Their Money?" Venture capital is important to an economy because it
A. Slows the growth of technology, which serves as an important correction for the economy.
B. Increases the pace of innovation and economic growth.
C. Slows the pace of innovation and economic growth.
D. Helps keep inefficient firms out of the industry.
Answer: B
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Briefly and concisely define the following terms: a. statistical discrimination b. compensating wage differential c. affirmative action
What will be an ideal response?
Critics of the RBC approach argue that it's hard to find productivity shocks large enough to cause business cycles. What is the RBC counterargument to this criticism?
A) Business cycles are always and everywhere a monetary phenomenon. B) Wars and military buildups could be considered productivity shocks. C) Business cycles could be caused by the accumulation of small productivity shocks. D) Business cycles are often caused by unobservable productivity shocks, which aren't apparent at the time they occur.
In a "crawling peg" regime, ________
A) the value of the currency is fixed to a basket of commodities B) higher inflation is permitted C) several anchor currencies are used in succession D) the currency may gain value, but cannot lose value
The large amount of violence associated with the current drug trade is mostly caused by
a. the fact that drug markets must operate outside the normal legal system. b. buyers and sellers often being under the influence of drugs at the time of the transaction. c. buyers and sellers who are often unfamiliar with conducting normal transactions within the legal system. d. the lack of quantity supplied and quantity demand being in balance in black markets because there is no equilibrium price in these markets.