Countries that have a higher degree of economic freedom tend to
What will be an ideal response?
c. invest a larger share of their output and the productivity of that investment is higher than for the economies that are less free
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A monopolist faces a downward-sloping demand curve because:
a. the demand for its product is inelastic. b. the industry demand curve is horizontal. c. resource prices increase as the monopolist expands output. d. the entire market demand curve is the monopolist's demand curve.
Anna, a U.S. citizen, works only in Germany. Where is the value she adds to production in Germany included?
What will be an ideal response?
Bars often offer specials on appetizers during "happy hour." What does the concept of price discrimination suggest about why this might be profit-maximizing behavior?
What will be an ideal response?
The term investment refers, in general, to
A) any action today that has costs today. B) any action today that has costs today but provides expected benefits in the future. C) only large projects, such as building a new factory, undertaken by private firms. D) only the creation of capital goods undertaken by private firms or the government.