Strong property rights are important for modern economic growth because:
they allow governments to extract the gains from private citizens' investments.
B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
C. they ensure an equitable distribution of income.
D. business cycle fluctuations will be smaller and less likely to disrupt investment patterns.
B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
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The beginning point of a graph (the 0,0 point) is known as
a. ground zero. b. mother lode. c. the origin. d. square one. e. the beginning.
The moral hazard problem refers to
a. difficulty banks have in satisfying the government's reserve requirement. b. depositors making a run on the bank, even though the bank is insured. c. banks taking on more risk in their lending because they know their depositors are insured. d. banks issuing bank notes that compete with the government's currency.
In the United States the share of foreignborn workers with 12 years of education or less is:
a. less than 10%. b. less than 50%. c. more than 70%. d. negligible.
Suppose that the percentage change in supply is -50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.