According to the World Bank, Albania does one of the worst jobs as a country enforcing the rule of law. The consequence of a weak rule of law is
A) strong property rights enforcement leading to greater investment.
B) more risk taking on the part of entrepreneurs and greater economic investment.
C) a decrease in cash transactions and increased efficiency.
D) difficulty in attracting investment and low economic growth.
D
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If the price of hamburger rises, we would expect the demand for steak to shift to the right.
Answer the following statement true (T) or false (F)
An increase in planned real investment spending causes
A) a shift of the C + I + G + X curve but has no effect on the aggregate demand curve. B) a movement along the C + I + G + X curve and a shift of the aggregate demand curve. C) a shift of the C + I + G + X curve that causes the aggregate demand curve to shift. D) a shift of the C + I + G + X curve and a movement along the aggregate demand curve.
"The standard of living is too low for many individuals in the United States. The government should implement policies designed to achieve a more equal distribution of income." The preceding statements are
a. positive economic statements based on cause and effect. b. normative economic statements based on value judgments. c. based on the fallacy of composition argument. d. an empirically validated economic principle.
Other things being equal, an increase in the rate of interest causes
a. an upward movement along the demand for money curve. b. a downward movement along the demand for money curve. c. a rightward shift of the demand for money curve. d. a leftward shift of the demand for money curve.