Rent seeking
A) is unlikely the more heavily engaged government planners are with the economy.
B) is more likely where institutions are strong.
C) is not likely to lead to waste and efficiency.
D) is more likely when government policy creates something of value that government officials are charged with distributing.
Question 2 - If domestic savings is less than domestic investment, then
A) reserve assets will increase.
B) the government runs a budget deficit.
C) there will be negative foreign investment.
D) a trade surplus must result.
Question 3 - It is normal and typical in a debt crisis for debtors to completely repudiate all their debts.
Indicate whether the statement is true or false
Question 4 - The relocation of service industry functions to another country is called what?
What will be an ideal response?
Question 5 - ISI policies were brought to an end primarily by
A) their inability to solve the crises of the 1980s.
B) authoritarian governments interested in total control over the economy.
C) populist politicians.
D) protests by consumers.
Question 6 - Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment.
B) the size of the capital account surplus.
C) the size of the current account deficit.
D) the amount of domestic savings.
Question 7 - A large and growing current account deficit can be an indicator of a potential crisis.
Indicate whether the statement is true or false
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