Which of the following statements correctly highlights a difference between countries with extractive economic institutions and countries with inclusive economic institutions?
A) Countries with extractive economic institutions typically have better geographical conditions that countries with inclusive economic institutions.
B) Countries with extractive economic institutions typically have worse geographical conditions that countries with inclusive economic institutions.
C) Entry barriers for new businesses are likely to be lower in countries with extractive economic institutions than in countries with inclusive economic institutions.
D) Entry barriers for new businesses are likely to be higher in countries with extractive economic institutions than in countries with inclusive economic institutions.
D
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Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities
The velocity of money is
a. money supply divided by prices. b. spending divided by output. c. required monetary reserves divided by income. d. GDP divided by the money supply.
Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16. What do you advise this firm to do?
A. Increase output. B. Decrease output. C. Stay at the current output; the firm is losing $200. D. Stay at the current output; the firm is earning a profit of $400.
An import quota is:
A. a restriction limiting the quantity of imported goods that can legally enter a domestic market. B. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market. C. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market. D. None of the statements are correct.