Biology Forums - Study Force

Positive externalities include benefits received the seller but not benefits received by the buyer.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Using Taylor rule, the federal funds rate is increased or decreased according to what is happening to both real GDP and inflation.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

Which of the following is a common argument against allowing a foreign firm to operate a business in a developing country?
 a. The foreign firm may gain control over national resources.
  b. Foreign productive expertise may outdistance domestic labor skills.
  c. The foreign firm may reduce domestic competition.
  d. Technology may be transferred from industrial countries to the developing countries.
  e. The foreign firm may reduce dependency on domestic imports.

Question 4

Since it is difficult to establish and enforce ownership rights over air, people have less incentive to preserve air quality than if its ownership was clearly defined.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 5

Indexing reduces the ability for relative price changes to allocate resources where they are more valuable.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

Foreign direct investment occurs when a company:
 a. purchases foreign securities such as stocks and bonds.
  b. establishes foreign operating units.
  c. enters into a contractual agreement involving exchange of services and payments.
  d. engages in international trade.
  e. gives aid to a Third World country.

Question 7

A public good is nonrivalrous and excludable.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 8

Proponents of the monetary growth rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility than with activist policies.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

How does the deadweight loss occur in a deficiency payment program?

Question 10

What is the main reason for the failure of import-substitution strategies to generate rapid economic growth?
 a. Deteriorating terms of trade
  b. Scarce natural resources
  c. Inefficient allocation of resources
  d. Lack of self-interested behavior by entrepreneurs
  e. Insufficient subsidies to domestic producers

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