What is the theory of Second Best?
What will be an ideal response?
The principal of the second best tells us that when an economy suffers from multiple distortions, the removal of only a few may make matters worse, not better.
Economics
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Foreign aid to a poor country might
A) improve its long run economic growth prospects. B) interfere with its domestic affairs. C) be allocated to useless projects and thereby reduce its growth rate. D) be used to keep its ruling party in power rather than spur economic growth. E) do any of the above.
Economics
The marginal product of labor curve is the demand curve for labor
Indicate whether the statement is true or false
Economics