Outline the various actions the government sector could take to promote growth
What will be an ideal response?
The government should secure private property rights. Private property rights are crucial for a smoothly functioning market system. The government should create a court system that will enforce contracts. It should also assist in the development of the country's financial system. Additional endeavors include strengthening the education, communication, and transportation systems.
You might also like to view...
In the long run,
a. both monopolists and perfectly competitive firms produce at minimum long-run average total cost. b. a monopolist will exit the industry if he is earning zero economic profit. c. a monopolist will always charge a higher price than he charges in the short run. d. consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive.
A shortage results when a
a. nonbinding price ceiling is imposed on a market. b. nonbinding price ceiling is removed from a market. c. binding price ceiling is imposed on a market. d. binding price ceiling is removed from a market.
When people refuse to pay down debt with their savings:
A. they are forgetting that money is fungible. B. they are acting irrationally. C. they will be poorer in the long run. D. All of these are true.
To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.
A. decreases; increases B. increases; decreases C. increases; does not affect D. does not affect; increases