Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country.
B. creates cultural and social differences among groups in developing countries.
C. produces excessive levels of domestic saving.
D. redistributes income.
Answer: A
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The manner in which FDIC deposit insurance is set up in the United States encourages banks to
A) make riskier loans than they otherwise would. B) reject some loans that probably would be profitable. C) be too conservative in their lending practices. D) maintain excess reserves that are too great.
Over the past 110 years, real GDP per person in the United States has grown at an average rate of about ________ per year
A) 1 percent B) 2 percent C) 5 percent D) 10 percent E) 7.5 percent
A representative firm in monopolistic competition will tend to make economic profits:
A. or losses in the short run, but the firm will break even in the long run. B. in the short run and long run. C. or losses in the short run, but the firm will make economic profits in the long run. D. and losses in the short run and long run.
For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A. market demand increases. B. marginal cost increases. C. market demand decreases. D. none of these: insufficient information to answer.