Why do political instability and insecure property rights retard economic growth?
a. Fear that private property will be confiscated substantially reduces the incentive to invest and create wealth.
b. When property rights are insecure, foreign investors will be reluctant to invest in the country.
c. Savings will tend to flow out of a country if individuals fear their property is insecure.
d. All of the above are correct.
D
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If the price of prime rib falls, the income effect due to the price change will cause
A) an increase in the quantity of prime rib supplied. B) an increase in the demand for prime rib. C) an increase in the demand for flank steak, a substitute for prime rib. D) an increase in the quantity of prime rib demanded.
The MRP of labor will shift to the left if
A) labor productivity increases. B) labor productivity decreases. C) wages increase. D) wages decrease.
The market demand curve for loanable funds represents the demand by
a. domestic firms b. domestic firms and domestic households c. domestic firms, households, and governments d. domestic firms and domestic governments e. domestic firms, households, governments, and the rest of the world
Which one of the following is not a component of GDP, as measured using the expenditure approach?
a. Personal consumption. b. Exports. c. Durable goods. d. Government spending. e. Interest.