Which of the followings statements correctly identifies an advantage of using foreign aid to eradicate poverty?
A) It is extremely efficient in countries where institutions are extractive.
B) It directly increases the efficiency of production in poorer countries.
C) Its flow is transparent and can be questioned by all individuals in the receiving country.
D) It leads to a redistribution of income around the world.
D
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Which of the following is a feature of a good theory?
A) A good theory does not rely on data. B) A good theory cannot be tested with data. C) A good theory is free from approximations. D) A good theory closely predicts actual behavior.
When an outcome is ________, social surplus is ________
A) Pareto inefficient; maximized B) Pareto efficient; maximized C) Pareto efficient; minimized D) Pareto inefficient; minimized
What incentive does price cap regulation attempt to give the firm? How does it give the firm this incentive?
What will be an ideal response?
If you were a Keynesian and wanted to stimulate the economy (to increase real GDP), you would
a. increase the money supply to lower the interest rate in order to increase investment b. increase the money supply to lower the interest rate in order to decrease investment c. decrease the money supply to lower the interest rate in order to increase investment d. decrease the money supply, which causes consumption to increase and saving to fall e. increase the money supply, which causes the interest rate to increase and production to increase as well