Discuss the allocation of direct foreign aid from IAC to the lowest-income DVC and its issues.
What will be an ideal response?
It is estimated that only about 25 percent of direct foreign aid goes to the 10 countries in which 70 percent of the world’s poorest people live. This aid, however, often represents a large amount of aid relative to the size of the GDP in those nations. For example, in 2011 foreign aid to GDP was 54 percent in Liberia, 37 percent in Afghanistan, and 17 percent in Mozambique. These nations also receive large amount of private donations through foundations and other charitable organizations. Some of the direct assistance from IAC to DVC also comes in the form of debt relief or debt forgiveness.
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour
After this minimum wage is in effect, and taking account of the resources lost in job search, workers' surplus equals ________. A) $800 B) $900 C) $400 D) $1,800 E) $200
Suppose the Fed has a target inflation rate of 3%, the Fed always hits its target, and the inflation rate has been 3% for several years
Furthermore, assume Amazon sets the price of its Kindle Fire at $140 in 2012 and wants to keep the real price of the Kindle constant in order to maximize profits. Now suppose that the Fed announces on January 1, 2013 that it will decrease its target rate for inflation to 1%. If Amazon has adaptive expectations, it will set its price for the Kindle in 2013 at A) $137.20. B) $140.00. C) $141.40. D) $144.20.
In the Malthusian model, the population growth rate is
A) exogenous. B) positively related to consumption per worker. C) negatively related to consumption per worker. D) assumed to be constant.
Governments may successfully intervene in competitive markets in order to achieve economic efficiency
A) at no time; competitive markets are always efficient without government intervention. B) to increase the incidence of positive externalities. C) in cases of positive externalities only. D) in cases of negative externalities only. E) in cases of both positive and negative externalities.