econ final.

Which agency lends money to countries to promote their economic development?

the world bank

factors that limit a poor nation's economic growth

-insufficient capital formation -lack of human capital -lack of entrepreneurial ability

illustrates her support for a market-friendly, entrepreneurial culture to stimulate the economy, even if some firms fail in the competitive struggle.

Margaret thatchers quote "Britain needs more millionaires and more bankrupts"

shows her determination to move toward a freer market economy by selling off state-owned enterprises to the private sector, even if some jobs were lost in the process.

Margaret thatchers quote "the lady's not for turning"

the maximum amount of a good that may be imported during a specified period of time is

import quota

In many Latin American economies, we find a large number of firms operating without required permits and licenses. A reason for this is:

Too much red tape involved in setting up a business or registering property

To promote efficient, competitive domestic industries, protectionist policies for import-substituting industrialization should:

be temporary

the tendency of talented people in developing countries to get education in developed countries and to stay there after graduation.

brain drain

The policy in which industrial production is oriented towards foreign consumers is called

export promotion

-Decrease the budget deficit. -Control inflation and encourage saving. -Reduce the size of the public sector through privatization.

goals of shock therapy programs

-Reduce the size of the public sector through privatization. -Control inflation and encourage saving. -Decrease the budget deficit.

goals of structural adjustment programs

A difference between a quota and a tariff is that

government collects revenues from a tariff

producers, workers and investors, since advocates of supply-side economics understand that incentivizing all three of these groups is necessary in order to encourage more investment spending and production.

group supply-side economists are concerned with

-It leads to the creation of inefficient, noncompetitive industries - It hinders innovation among domestic firms -It can become an impediment to more rapid growth

import substitution

The process of developing local industries to manufacture goods to replace imports is known as

import substitution

A common argument used by a developing country to justify protecting a domestic industry from import competition is the ___________________ argument, which is related to the process of "learning by doing."

infant industry

A dictatorship is a system of government in which ultimate power

is concentrated in a single person.

One of the most successful countries in implementing export driven growth policies is

japan

capital flight refers to the fact that both human and financial capital

leave developing countries in search of a higher rate of return

The trend in current tariff laws is to

lower tariffs on foreign goods

Which of the following is an example of a supply-side stimulus to the economy?

marginal tax cut

Building roads, power generators, and irrigation systems are projects that are referred to as

physical infrastructure

a government-imposed restriction on the quantity of a specific good that can be imported into a country.

quota

good economic policies such as market-friendly leadership, targeting capital intensive & high tech industries, high savings rates, investments in human capital, and a high rate of physical capital accumulation.

reasons for the rapid economic growth in many East Asian economies in the years following WWII

A democracy is a system of government in which ultimate power

rests with the hands of people.

a tax on imported goods

tariff

The 40-year rivalry between the United States and the former Soviet Union between the end of World War II and the 1980s was called

the cold war

Which agency lend money to countries to help them stabilize their exchange rates?

the international monetary fund

Statistics show that the less developed a country is

the larger is the share of agricultural output in its total output.

During the 1980s, a new school of economic thought emerged that explained the impact of the 1970s oil supply crisis on the economy and what could be done to stimulate more investments, more production and ultimately, economic growth. The school became known as supply-side economics.

true