Answer the following statements true (T) or false (F)
1. The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.
2. Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.
3. Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.
4. The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.
5. The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.
1. F
2. F
3. F
4. T
5. F
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Beth has moved into a new house. Most people living in her neighborhood go for a jog early in the morning. Although Beth had always been a late riser, she too started getting up early for a jog after moving into her new house
This is an example of a(n) ________. A) moral hazard B) adverse selection C) peer effect D) negative externality
Which of the following is false? a. An increase in labor productivity will shift the demand curve for labor to the right
b. An increase in wage will lead to an increase in the supply of labor. c. A decrease in the nonwage income of workers would shift the labor supply curve to the right. d. If job amenities deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve.
The saying "There's no such thing as a free lunch," applies
A) when there is some unemployment. B) on the production possibilities frontier. C) at all points inside the PPF. D) to unattainable combinations of goods and services. E) when more of one good can be produced without decreasing production of another.
In the long run,
a. fiscal policy has no effect on the labor force participation rate. b. lower tax rates can lower the labor force participation rate. c. less generous transfer payments can raise the labor force participation rate. d. higher tax rates can raise the labor force participation rate. e. None of the above