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(I) A monetary policy that results in price stability will encourage the realization of gains from trade?

Question by : (I) A monetary policy that results in price stability will encourage the realization of gains from trade?
1) (I) A monetary policy that results in price stability will encourage the realization of gains from trade and thereby help promote economic growth.
(II) High tariffs and restrictive quotas will encourage rapid economic growth.

A) I is true; II is false.
B) II is true; I is false.
C) Both I and II are true.
D)Both I and II are false.

2) Which of the following would be most likely to cause the per capita income of less-developed countries to rise?

A) development of strong labor unions
B) more rapid population growth
C) investment expenditures that enhance the human capital of labor force participants
D) an international minimum wage law

3) Which of the following would be most likely to cause the per capita income of less-developed countries to rise?

A) development of strong labor unions
B) more rapid population growth
C) investment expenditures that enhance the human capital of labor force participants
D) an international minimum wage law

4)Individuals are more likely to engage in productive activities when institutions and policies

A) create a fair and unbiased judicial system.
B) result in high and variable rates of inflation.
C) transfer a large share of income through the political process.
D) are used to centrally plan the economy.

Best answer:

Answer by Anjaree
The answers are
1. A
2.C
3.C
4.A

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