According to economist Paul Romer, economies that wish to experience growth must
A) invest most of their savings in national defense.
B) invest in knowledge.
C) drastically lower their standards of living.
D) become command economies.
B
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For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?
What will be an ideal response?
A ________ card purchase takes money out of your checking account.
Fill in the blank(s) with the appropriate word(s).
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
Suppose there are two firms on a river and the production processes of both require clean water. The upstream firm's process dirties the water, which it dumps back into the river. The downstream firm must clean the water before using it in its production process. If the two firms would merge
A. the internal costs of the downstream firm become external costs of the merged firm. B. the external costs of the merged firm would equal the external costs of the upstream firm, which would then be passed on to its customers. C. the external costs of the upstream firm are private costs after the merger. D. the total costs of production fall since the external costs disappear.