Quiz7_last year example

Quiz7_last year example - Note that this quiz is from the...

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Note that this quiz is from the last year, and it is posted for preparation to finals! Quiz # 7 Institutions/Foreign Investment 1. An argument in favor of foreign direct investment is that it tends to A) Decrease local ownership. B) Produce knowledge spillovers. C) Transfer prices. D) Promote rural development. E) None of the above. Answer: B 2. Institutions play an important role in economic development because: a. They can create a more stable economic environment, making it easier for citizens to make decisions. b. They can increase trust, allowing resources previously used to protect a citizen's interest to be employed in a more productive manner. c. They can help ensure the conditions for perfect market competition are met, thereby increasing the likelihood of a socially optimal allocation of resources. d. All of the above. Answer: D 3. We saw in the movie that, according to economist Hernando DeSoto, the lack of formal property
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This note was uploaded on 01/29/2012 for the course ECON 445 taught by Professor Mcmanus during the Fall '08 term at UNC.

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Quiz7_last year example - Note that this quiz is from the...

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