Explain why policies designed to reduce urban unemployment may not greatly reduce poverty in developing countries
What will be an ideal response?
They may lead to more migration, and may draw capital away from labor intensive rural development projects benefiting the rural poor.
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If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real GDP is $13.4 trillion, then taxes would need to be cut by ________ to restore the economy to potential real GDP
A) $250 billion B) $400 billion C) $640 billion D) None of the above are correct. Taxes should be increased in this case.
In the United States, government-imposed price supports are most often associated with
A) agricultural products. B) industrial products. C) consumer electronics. D) commercial building products.
Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?
a. labor b. capital c. natural resources d. entrepreneurial ability e. All of the answers are correct.
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise. b. M2 money multiplier to fall. c. M2 money multiplier to remain the same. d. M2 money supply to fall.