The vicious circle of poverty refers to a condition where
a. people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor
b. people who borrow money at high interest rates can never get out from under the indebtedness created
c. people invest in unprofitable projects and keep pouring loanable funds into those projects in the hope of salvaging them
d. people prefer consumption goods to capital goods so there are insufficient capital goods to propel the economy out of poverty
e. poverty is relative and poor people remain poor because the wealthy grow wealthier
A
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If some gain and some lose as the result of a change, and it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be
A. technically efficient. B. inefficient. C. potentially efficient. D. unequivocally Pareto optimal.
Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will: a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units. c. remain at $12.50, and quantity will rise above 50 units. d. remain at $12.50, and quantity will remain at 50 units.