The biggest barrier to growth for many of the poorest countries in the world is the need for:
A. more physical capital.
B. larger populations.
C. more human capital.
D. improved legal and political frameworks.
Answer: D
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When the labor market is in equilibrium so that the quantity of labor supplied equals the quantity demanded,
A) there is no unemployment. B) the economy is at full employment. C) nominal GDP equals real GDP. D) there is no inflation. E) real GDP might be more than, less than, or equal to potential GDP.
Clarissa Kessler operates a store that sells toys. Her business suffered tremendously when a giant discount store chain opened a store in the area and is able to sell its products for less than Clarissa's wholesale cost
Is this evidence of illegal price discrimination on the part of the discount store chain? A) No, even if the price discrimination is based on differences in cost, the law states that it is not illegal. B) No, because it can be argued that the discount store chain is justified in charging lower prices because it is a large-volume buyer and is able to purchase toys at a lower wholesale price than Clarissa. C) Yes, it is clearly a violation of the Robinson-Patman Act. D) Yes, the discount store chain is engaging in predatory pricing.