Question : 31) A major factor contributing to the slow growth rate : 1267028

31) A major factor contributing to the slow growth rate of less developed economies is

A) the lack of well-defined and enforceable property rights.

B) the lack of natural resources.

C) the lack of workers.

D) the high rate of illiteracy.

32) A successful market economy requires

A) a government-controlled banking system and government price controls.

B) well-defined property rights and an independent court system to adjudicate disputes based on the law.

C) generous unemployment benefits and paid medical leave for everyone in the labor force.

D) an equitable distribution of income and limits on immigration.

33) Consider the following items:

a.the novel “The DaVinci Code” by Dan Brown

b.the “The Spirited Shipper”, an innovative wine shipping box

c.a Swiss chef’s award-winning recipe

d.an original fabric design, for example, the fabric used for “Coach” bags and luggage

Which of the items listed is an example of intellectual property?

A) a and b only

B) a, b, and c

C) a and d only

D) all of the items listed

34) An organization of producers that limits the amount of a good produced is known as a

A) free market organization.

B) guild.

C) collective.

D) co-op.

35) In 18th century Europe, governments gave guilds legal authority to limit production of goods. Did this authority obstruct or improve the market mechanism and how?

A) It improved the market mechanism by making it more efficient because the guilds were able to quickly identify and rectify any market shortages and surpluses.

B) It improved the market mechanism because the government’s actions provided the correct set of signals to the market so that producers can adjust their output to better meet the needs of consumers.

C) It obstructed the market mechanism because the guild’s actions prevented the forces of demand and supply from coordinating the self-interested decisions of producers and consumers.

D) It obstructed the market mechanism because with one more party having to coordinate activities (the guilds) there were delays in getting the products to consumers.

36) Stricter laws and regulations to protect intellectual property rights

A) will help to create a more successful market system.

B) will only benefit those companies whose intellectual property rights have in the past been ignored.

C) will tend to have little impact on an economy since intellectual property is not tangible.

D) will create a stronger and more successful black market for intellectual property.

37) If a nation changes its laws to more actively enforce intellectual property rights, all of the following will most likely take place except

A) more software companies will choose to export their products to that country.

B) more film makers will choose to do business in that country.

C) the black market for intellectual property will become more prosperous in in that country.

D) foreign investment in that country will increase.

38) The payment received by suppliers of entrepreneurial skills is called interest.

39) In the circular flow model, households supply resources such as labor services in the product market.

40) Entrepreneurs bring together the factors of production to produce goods and services.