Which of the following would be most likely to encourage capital formation in a less-developed country?
a. The expectation of sustained high inflation.
b. The expectation that property rights will be highly secure in the years ahead.
c. The imposition of high tariffs and other restraints limiting imports.
d. Higher personal and corporate tax rates.
b
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Which of the following is an example of roundabout production?
a. Paul pays Ringo to wash his car. b. A church has a bake sale to raise money for a new narthex. c. Jane saves her money to buy a stereo. d. Robinson Crusoe makes a fish net to help him catch more fish per day. e. Business owners in Minneapolis buy blocks of Minnesota Twins baseball tickets to help guarantee that the team will stay in town.
To move up the income ladder and achieve high-income status, countries must
a. have sustained economic growth. b. restrict international trade. c. encourage the production of consumption goods rather than investment goods. d. maintain high inflation.
Use the figure below to answer the following question.
Refer to the three demand curves. A "decrease in demand" would be illustrated as a change from
A. line C to B. B. line A to C. C. point 1 to point 4. D. point 6 to point 3.
As a last resort the federal government may provide direct income support to farmers. One potential advantage of direct income supports is that they
A. Raise market prices. B. Provide income security without distorting market prices and output. C. Increase market output. D. Reduce consumption.