The basic idea behind the convergence theory is:
A. that countries starting at low levels of income will tend to grow at much faster rates than those starting with high levels of income.
B. each additional unit of capital provides larger gains when you're coming from behind.
C. also the basic idea behind the catch-up effect.
D. All of these are true.
D. All of these are true.
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Which of the following statements is true?
A) The basis for both first-degree price discrimination and third-degree price discrimination is differences in the buyers' willingness to pay for a good. B) The basis for both first-degree price discrimination and third-degree price discrimination is differences in the sellers' willingness to accept payment for a good. C) The basis for first-degree price discrimination is differences in willingness to pay, whereas the basis for third-degree price discrimination is differences in the sellers' willingness to accept payment for a good. D) The basis for first-degree price discrimination is differences in the seller's willingness to accept payment for a good, whereas the basis for third-degree price discrimination is differences in buyers' willingness to pay for a good.
In a competitive equilibrium, the total consumer surplus must equal the total producer surplus
Indicate whether the statement is true or false
A perfectly competitive firm can continue to earn above-normal profit in the long run
a. if it has a continued technical advantage over other firms in the market and it is able to keep that advantage a secret b. if it has employees that are substantially more efficient than other firms' workers c. if its centralized location reduces its transportation costs below those of other firms d. if it has easier access to necessary raw materials e. under no circumstances
Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to:
A. asset price inflation. B. goods price deflation. C. a reduction in the debt ceiling. D. goods price inflation.