Question

17. Which is NOT A) B) C) institution T an institution that leads to sustained long-term economic growth? a dependable legal system a stable political system an honest government ) a more equal income distribution 18. Institutions: A) are not important in market economies B) structure economic incentives C) matter only when backed by law D) are only important in market economies upkep is cale d oumes a resource without working or contributing to the resource's upkeep is called a(n): A) easy rider. B) free rider C) double rider D) outlaw 20. Corruption is like a "tax" on firms because A) firms can file for a refund for the money paid as bribes. B) bribes add to a firm's production costs. C) firms usually pay bribes to avoid paying corporate taxes. D) fims have to pay a certain percentage of their profits at the end of the fiscal year as bribes. 21. Property rights are important institutions for encouraging investment because A) they eliminate corruption. B) C) D) they increase the average return to investing, thus increasing the overall level of investment in the economy. people won't invest if they feel their property is at risk and that they may not realize a return on their investment. they tend to support industrial sectors more than agricultural sectors. 22. Countries on the "cutting edge" grow primarily by A) adopting ideas already used by other countries. B) capital accumulation. C) developing new ideas. D) eliminating waste and inefficiency

Answer 1

Ans 17: (D) It would not lead to have a sustained long term economic growth.

Ans 18: (D) These are important in market economy and plays a significant role.

Ans 19: (B) Free rider, the individual who does not pay and contribute for a resource and consumes its benefit, free of cost.

Ans 20: (B) The amount spent on bribes are a part of production costs.

Ans 21: (C) Property rights helps to determine which property belongs to someone.

Ans 22: (C) Developing new ideas, new technology , innovation