What is the main reason for the failure of import-substitution strategies to generate rapid economic growth?
a. Deteriorating terms of trade
b. Scarce natural resources
c. Inefficient allocation of resources
d. Lack of self-interested behavior by entrepreneurs
e. Insufficient subsidies to domestic producers
c
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Refer to the table above. The opportunity cost per dollar of value added in designing shoes by workers in Eduland is ________
A) $0.25 B) $0.50 C) $4 D) $12
Which supports the economist's claim that buyers don't compete against sellers?
A) Diners would rather have more restaurants to choose among. B) Music buyers prefer having access to internet music stores compared to only the local music shop in town. C) Car buyers prefer several dealerships in the region compared to only one. D) Homebuyers prefer a larger selection of homes to a smaller one. E) All of the above.
Alicia is a vegetarian, so she does not eat beef. That is, beef provides no additional utility to Alicia. She loves potatoes, however. If we illustrate Alicia's indifference curves by drawing beef on the horizontal axis and potatoes on the vertical axis, her indifference curves will
a. slope downward. b. be vertical straight lines. c. slope upward. d. be horizontal straight lines.