The quantity theory of money and prices assumes

Trends in economic growth of South Korea have been significantly different from the trends in economic growth of North Korea. This is primarily because

A) North Korea has inclusive institutions while South Korea has extractive institutions. B) quality of agricultural land is better in North Korea than in South Korea. C) quality of agricultural land is better in South Korea than in North Korea. D) South Korea has inclusive institutions while North Korea has extractive institutions.

Government assistance to farmers, which seeks to maintain a target price by buying surplus output, results in

A) higher prices and less food for consumers. B) higher prices and more food for consumers. C) lower prices and less food for consumers. D) lower prices and more food for consumers.