Which of the following is not a reason for the establishment of intergovernmental transfer programs?
a. Higher level governments want to encourage lower governments to undertake certain programs.
b. Taxes are harder to avoid at higher levels of government.
c. To provide for national defense resources utilized at the local level.
d. Equalization of resources between richer and poorer localities
c
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According to the Heckscher-Ohlin model, the source of comparative advantage is a country's
A) factor endowments. B) technology. C) advertising. D) human capital. E) political system.
Some low-income countries generally remain poor because
a. their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. b. they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. c. they are poorly endowed with natural resources, which are essential for long-term growth. d. when the average income level is low, workers have little incentive to earn higher incomes.