Answer: d. institutions and policies that encourage productive activities
If a poor country is going to grow rapidly and achieve a high level of per capita income, which of the following is most important?
a. abundant natural resources
b. substantial aid from rich countries
c. central planning and a high level of government expenditures
d. institutions and policies that encourage productive activities
Economics
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Economics
An increase in demand will have what effect on equilibrium price and quantity?
A. Price will increase; quantity will decrease. B. Price will decrease; quantity will increase. C. Both price and quantity will increase. D. Both price and quantity will decrease.
Economics
Waterview Corp, a local water supplier, incurs a fairly minimal marginal cost to provide water services to an additional home in its area of operation. This implies that the water supplier: a. experiences economies of scale
b. has inferior technology. c. has an infinite stock of raw materials. d. practices perfect price discrimination.
Economics
A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?
Economics