Among the rationales for state owned enterprises is
(a) existence of monopoly.
(b) the need for capital formation.
(c) desirability of national control over strategic sectors of the economy.
(d) all of the above.
(e) none of the above.
Question 2 - The annual income that can be consumed without diminishing the total capital assets of a nation is
(a) purchasing power parity income.
(b) sustainable national income.
(c) environmental capital stock.
(d) per capita income.
Question 3 - International resources shared by all countries such as oceans and air are known as
(a) global commons.
(b) free rider problems.
(c) nonrenewable resources.
(d) cooperative resources.
Question 4 - A development bank
(a) accepts deposits from the poor.
(b) makes loans for industry expansion.
(c) is an agency such as the World Bank.
(d) all of the above.
(e) none of the above.
Question 5 - Does it matter how much a developing country saves? Explain why or why not. Discuss theories and evidence on whether developing countries can increase the net savings rate in the economy through public policy.
In particular, consider whether this can be accomplished through increased or decreased taxation of one or more types, and increased or decreased government spending of one or more types.
Question 6 - Lack of economic success in many African countries can be attributed to
a. excessive money supply growth
b. too-rapid market liberalization
c. weak social institutions
d. too much state control over agricultural production
e. all of the above
Question 7 - The free rider problem is a situation in which
(a) effluents such as CFCs combine with ozone and decrease concentrations of that protective chemical.
(b) one agent secures benefits that others pay for.
(c) there are excessive subsidies given to polluting buses or other forms of mass transit.
(d) perfect property rights exist.
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