What causes a person, or a nation, to be poor? Why are there poor people in rich countries, and rich people in poor countries?
What will be an ideal response?
Students may want to focus on natural resources and capital goods, but should emphasize human capital, especially education and acquisition of skills. Such an emphasis can help explain both parts of the question.
Economics
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Which of the following would be the source of a "real" business cycle?
A) changes in technology B) anticipated expansionary monetary policy C) unanticipated contractionary monetary policy D) unanticipated expansionary monetary policy
Economics
The U.S. personal saving rate ________
A) is much higher than the percentage the Chinese citizens save B) is higher than the saving rate of most countries C) cannot fall below zero D) increased by a factor of five every year since the 1970s E) none of the above
Economics