What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries
What will be an ideal response?
The student is asked to describe the economic benefits of reducing corruption. These include the growth enhancing effects described in the text and illustrated in Figure 11.3 for Ecuador. The text notes that the burden of corruption falls disproportionately on the poor so combating corruption could couple as a poverty reduction strategy.
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Changes in which of the following do NOT shift the AS curve? i. the price level ii. potential GDP iii. the money wage rate
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The economy is in equilibrium, TP = TE, and Real GDP is $500 billion. The MPC is 0.95, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending rises by $4 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) upward; fall; increase; rises; $3.8 billion B) upward; fall; increase; rises; $8 billion C) downward; rise; decrease; falls; $80 billion D) upward; fall; increase; rises; $80 billion E) downward; fall; decrease; falls; $3.8 billion
Since World War II, world trade has
A. risen sharply, outpacing gains in annual world real GDP. B. increased in relative importance for most nations, but not for the United States. C. decreased in importance as nations turn inward due to security concerns. D. increased, but not as dramatically as annual world real GDP has climbed.
If firms that practice second degree price discrimination use more block prices,
A) both consumer surplus and welfare will decrease. B) both consumer surplus and welfare will increase. C) consumer surplus will decrease, but welfare will increase. D) consumer surplus will increase, but welfare will decrease.