How do government policies that enforce property rights affect economic growth?
What will be an ideal response?
Without enforceable property rights, entrepreneurs lose the incentive to take on risk because they are not assured ownership of their resources. Economic growth suffers as a result. Failure to protect intellectual property rights has a similar impact. If the benefits of technological advances are shared with all firms, each individual firm has little incentive to invest in the costly research and development necessary for technological progress to continue.
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Does an oligopoly produce the efficient quantity of output or does it create a deadweight loss? Do the firms want to produce the efficient quantity of output? Explain your answer
What will be an ideal response?
Funds are channeled from savers to borrowers directly through ________ and indirectly through ________
A) financial markets; financial intermediaries B) financial intermediaries; financial markets C) main banks; branches D) brokers;' agents
Which of the following is not a reason for differences in total factor productivity across countries?
A) Differences in the size of population. B) learning by doing. C) barriers to the adoption of new technology. D) inefficient allocation of factors of production across firms in some countries.
The gravity equation was tested and found to be very accurate in predicting:
a. world trade in total. b. trade between various provinces in Canada and American states. c. trade between the United States and Japan. d. trade between nations in the European Union.