What are some of the issues that economists have to worry about when studying developing nations that are very different from those of advanced industrialized nations?
What will be an ideal response?
In developing nations, an economist may have to worry about chronic food shortages, explosive population growth, and hyperinflations that reach triple, and even quadruple, digits. The United States and other industrialized economies rarely encounter such difficulties.
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The Bureau of Economic Analysis excludes from its calculation of GDP most of the goods produced that are not sold in markets because
A) their production has no real costs. B) their value is implicitly included in the prices of marketed goods. C) there is no satisfactory way to measure their value. D) they do not contribute to national welfare. E) this would be inappropriate for an exchange economy.
Which of the following is true?
a. Competitive behavior is present in the market sector but not in the public sector. b. Because candidates for public office represent a bundle of views, there is more ability for individuals to make their preferences count on specific issues than in the market sector. c. When decisions are made democratically, the economic and political power of all individuals will be equal unlike in the market sector. d. The reality of the aggregate consumption-aggregate payment link imposed by scarcity is present in both the market and public sectors.
The most competitive industry among the following is one that has
A. price leadership. B. covert collusion. C. open collusion. D. a cartel.
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
A. Huge current account deficit B. Currency pegged to the dollar C. Floating rate policy D. Adherence to the old gold standard