The Indian government is known for creating obstacles to foreign investment with tariffs, investment caps and tons of red tape. What effect does "red tape" have on growth?
A. It encourages learning by doing.
B. It discourages entrepreneurship.
C. It discourages leisure.
D. It encourages specialization.
Answer: B
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The general term elasticity refers to a relationship between
a. quantity demanded and price only b. quantity supplied and price only c. quantity supplied or demanded and price only d. quantity supplied or demanded and anything other than price e. percentage changes in any two variables
Consumer surplus can be measured as the area between the demand curve and the supply curve
a. True b. False Indicate whether the statement is true or false
A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider?
A. Language variations B. Currency fluctuations C. Differences in laws D. Opportunity costs
A recession is associated with a negative rate of growth of the economy.
Answer the following statement true (T) or false (F)