What role does population growth play in economic development?
What will be an ideal response?
Rapid population growth creates a high dependency ratio and requires substantial investment of resources in health, education, and training. These resources could alternatively have been invested in physical capital and infrastructure to promote the growth of GDP.
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Criteria for an optimum currency area include all the following except
A) fiscal transfers. B) similar business cycle patterns. C) extensive trade with each other. D) a common language.
The fact that some resource prices are fixed by contracts help explain why firms:
a. increase output in the short run when the price level increases b. keep production levels constant in the short run when the price level decreases. c. sell output in the short run at fixed prices. d. increase output in the long run when the price level increases. e. decrease production when nominal wages fall in the long run.
Most cultural theories of poverty assert that the poor lack sufficient desire and motivation to escape poverty
Indicate whether the statement is true or false
Which of the following is true? a. The money supply will tend to fall when the Fed pays a higher interest rate on bank reserves
b. If banks never wanted to hold excess reserves, decreasing the interest rate the Fed pays on reserves would not increase the money supply. c. If banks hold excess reserves, the actual money multiplier would be less than potential money expansion. d. All of the above are true