Answer the following statements true (T) or false (F)
1. The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector.
2. The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.
3. The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.
4. An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.
5. In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.
1. T
2. T
3. T
4. T
5. T
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The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then
A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) There is neither a surplus nor a shortage, but the market is NOT in equilibrium.
If a firm in monopolistic competition is earning an economic profit,
A) it is in the long run. B) other firms can enter the market. C) it can do so because it is "monopolistic" and other firms will have a hard time competing with it. D) its average cost must exceed its marginal cost. E) The question errs because firms in monopolistic competition cannot earn an economic profit.
Distinguish between invention and innovation
Refer to the information provided in Figure 34.3 below to answer the question(s) that follow.
Figure 34.3Refer to Figure 34.3. If the British price level decreases, the supply of pounds will
A. shift from S1 to S0. B. shift from S0 to S2. C. shift from S1 to S2. D. not change.