Explain the motives of developed countries in providing foreign aid
What will be an ideal response?
Creation of markets, geopolitical influence, etc., discussed in the chapter.
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When a tax is imposed on the suppliers of a good or service, then
A) in general, the producers pay all the tax. B) in general, the consumers pay all the tax. C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller. D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.
If China decides to enact laws to clean up the environment, what would be the effect on GDP?
A) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP. B) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls. C) GDP would increase as the citizens of China were made happier as the environment was cleaned up. D) GDP would increase reflecting the fact that the environment would be cleaner.