Which of the following would be most likely to improve the standard of living of a less-developed country?
a. Development of strong labor unions.
b. More foreign investment, attracted by the expectation of economic and political stability.
c. Adoption of trade barriers (higher tariffs and quotas).
d. Widespread use of price controls to allocate goods and resources.
Answer: b. More foreign investment, attracted by the expectation of economic and political stability.
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. Runoff from urban streets is an example of nonpoint source pollution. 2. Since acidic deposition arises around the world, it is considered to be global pollution. 3. The warmer temperatures in the Gulf of Mexico may have increased the magnitude and extent of the damages linked to the Gulf oil spill in 2010. 4. When scientists first identified the ‘ozone hole’ over the Antarctic region in the 1980s, it was less than 10 miles in diameter. 5. Concern for managing natural resources to ensure their quality and abundance for future generations is called sustainable development.
Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________
A) aggregate supply; government spending B) aggregate demand; taxes C) aggregate supply; taxes D) aggregate demand; government spending
The law of diminishing marginal utility explains why
a. most individual demand curves are straight lines. b. the consumer's optimal purchase is at the tangency of an indifference curve and the budget line. c. most individual demand curves slope downward. d. marginal utility falls when total utility falls.
Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the long run?
A. a recessionary gap B. an inflationary gap C. a reduction in real GDP D. none of these