Strong property rights are important for modern economic growth because

20. Strong property rights are important for modern economic growth because: a. they allow governments to extract the gains from private citizens investments. b. people are more likely to invest if they dont fear that others can take their returns on investrment without c. they ensure an equitable distribution of income. d. business cycle luctuations will be smaller and less likely to disrupt investment patterns. 21. A subsistence economy is: a. a very low income economy b. an economy in which people make what they consume. c. an economy in which people receive food for pay. d. all of the above. 22. Based on recent estimates of 2005 purchasing power parity (PPP) dollars, developmental econormists now estimate living in extreme poverty as living below: a. S1.00 a day b. S1.25 a day c. S1.57 a day d. S4.95 a day 23. Consider the Harrod-Domar model. If S100 of output requires capital valued at $200 then the capital-output ratio 1s: a. 0.5 b. 0.55 c. cannot be determined from information above. 24. Most economists agree that an effective way of comparing income levels between countries around the world is through the use of b. GDP divided by GNP c. foreign investment. d. purchasing power parity 25. Growth depends on which two processes? a. b. c. d. accumulation of assets and making those assets more productive harnessing natural resources and marketing them to developed nations at a fair trade rate exploitation of the agricultural sector in order to advance industrialization engaging in free trade while subsidizing domestic agricultural and industrial production

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