While many developing countries have reformed their economies in order to imitate the success of the successful industrial economies, the process remains incomplete and most developing countries tend to be characterized by all of the following EXCEPT
A) seigniorage.
B) control of capital movements by limiting foreign exchange transactions connected with trade in assets.
C) use of natural resources or agricultural commodities as an important share of exports.
D) a worse job of directing savings toward their most efficient investment uses.
E) reduced corruption and poverty due to limited underground markets.
E
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The theory that suggests that our unlimited wants will lead to perpetual economic growth is the
A) classical growth theory. B) old growth theory. C) sustained growth theory. D) Malthusian growth theory. E) new growth theory.
Adoption of a guaranteed annual income with benefits (B) given by B = 20,000 -.5 (earnings) would be expected to reduce work effort by low wage workers because:
a. the income effect would outweigh the substitution effect of the plan. b. the substitution effect would outweigh the income effect of the plan. c. both substitution and income effects would operate to reduce work effort. d. the plan would make working financially unattractive.