As developing countries make a transition to market-based economies, one of the first major capital investments is in "Western-quality" hotels. Explain why brand-name hotel accommodations are a critical step in attracting foreign investment
Brand-name hotels are a critical first step to economic development because their recognized signal of quality reduces the barriers of facilitating foreign visitors (and their money).
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Both presidents Kennedy and Reagan proposed significant cuts in income taxes. Opponents of these tax cut proposals argued that
A) it would be better to cut taxes on corporate profits. B) cutting state sales taxes, rather than federal income taxes, would result in greater economic efficiency. C) while the tax cuts would result in greater economic efficiency, there was too much opposition to the tax cuts in Congress. As it turned out, Congress ultimately approved both tax cut proposals. D) the tax cuts would benefit high-income taxpayers.
If a production function has two inputs and exhibits constant returns to scale, then doubling both inputs will cause the output to:
A. reduce by half. B. stay the same. C. double. D. quadruple.
The wage-schooling locus fails to allow researchers to test the theory that people choose education levels to maximize lifetime earnings because of self-selection. In this context, self-selection refers to
A. people letting their ability dictate, in part, how much education they complete. B. firms paying more educated workers a higher wage than they pay less educated workers. C. college graduates selecting their occupation later in life. D. firms hiring workers of varying ability. E. college students completing high-wage majors.
An example of an increase in gross private domestic investment spending that also increases Gross Domestic Product (GDP) is when
A. a farmer buys a used tractor. B. inventories of new cars accumulate on the lots of car dealers. C. a family sells its home because of a transfer. D. government increases spending on infrastructure.