What is former World Bank economist William Easterly's explanation for why developing countries fail to grow even with the aid of international agencies like the World Bank?
What will be an ideal response?
According to Easterly, governments in developing countries have failed to provide the proper economic environment that would motivate individuals and firms to take actions that promote economic development. The World Bank and other international agencies should not try to find a magic bullet for development, but should instead hold governments responsible for creating the proper economic environment.
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A small business owner who is earning a positive economic profit, no matter how small, is doing better than if she sold her business and went to work for another firm
a. True b. False Indicate whether the statement is true or false
The very low inflation that the U.S. experienced in 2009 and 2010
a. appears to have reduced expected inflation, and the short-run Phillips curve shifted downward as a result. b. appears to have reduced expected inflation, and the short-run Phillips curve shifted upward as a result. c. does not appear to have reduced expected inflation, and the short-run Phillips curve remained relatively stable as a result. d. does not appear to have reduced expected inflation, but the short-run Phillips curve shifted dramatically nevertheless.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
a. the law of absolute advantage. b. the law of demand. c. the law of production possibilities. d. the law of comparative advantage
The balance of payments:
A. can only be expanded when the government has foreign exchange reserves. B. is always zero C. with some nations is different than it is with others D. is negative when the nation runs a trade deficit