If a nation starts out with very little capital
A. it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods.
B. it can quite easily divert some resources from producing consumer goods to producing capital goods.
C. if it possesses a valuable commodity that the industrial world wants such as oil, it can sell its oil in exchange for plant and equipment and thus industrialize.
D. None of the choices are true.
C. if it possesses a valuable commodity that the industrial world wants such as oil, it can sell its oil in exchange for plant and equipment and thus industrialize.
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Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Generally speaking, the government implements fiscal policy in a:
A. fast but inaccurate manner. B. slow but accurate manner. C. slow and inaccurate manner. D. fast and accurate manner.
Which one of the following individuals is NOT counted as unemployed?
A. a 22-year-old aspiring actress currently without any show business employment, but working temporarily as a waitress while she auditions for acting jobs B. a 50-year-old woman laid off from her former job because of a downturn in the company's sales and looking for another job C. a 35-year-old woman fired from her prior work because of poor performance and looking for another job D. a recent college graduate currently without any employment and looking for her first full-time job
All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments. B) the larger number of companies listed on world stock exchanges. C) the need to protect from sudden changes in currency values. D) the problem of volatility in financial capital flows. E) the reduction in transaction costs for foreign investment.