An LDC can experience economic development at virtually zero opportunity cost by
a. establishing a comprehensive banking system
b. taxing its citizens at a higher rate
c. bringing in foreign direct investment
d. increasing its population growth rate
e. giving up consumer goods to acquire capital goods
C
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Political business cycles which are the results of economic fluctuations that occur when discretionary policy is manipulated for political gain
Indicate whether the statement is true or false
Suppose that the percentage change in supply is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?
A. 0 B. 1 C. 2 D. 3
Related to the Economics in Practice on p. 429, which of the following would not be an item counted in GDP as it relates to transactions on eBay?
A. A newly minted Scrabble game. B. eBay's seller fees. C. Starbuck's coffee beans. D. A Chicago World's Fair pennant.
Due to externalities generated by home landscaping, its price
A) is above the optimal level, and quantity that is below the optimal level. B) is below the optimal level, and quantity that is above the optimal level. C) and quantity traded are both above the optimal level. D) and quantity traded are both below the optimal level. E) must fall in order for the market to reach equilibrium.