Some governments have made great efforts to "formalize" informal firms by extending regulations and their enforcement. Might governments be better advised to ignore, or even help, informal firms?
What will be an ideal response?
The contributions of informal firms (output, employment, training, etc.) should be mentioned, along with the cost of enforcing regulations on many small firms. Given many advantages to medium and large firms, government might be better off allocating its resources to enforcing legitimate regulations on those firms and letting smaller ones operate more freely.
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Which of the following factors are least likely to affect what countries end up trading in the international market?
a. International trade tariffs b. Government debt levels c. Comparative advantages d. Differences in tastes e. Different technological needs
A certificate of indebtedness that specifies the obligations of the borrower to the holder is called a
a. bond. b. stock. c. mutual fund. d. All of the above are correct.