Which of the following statements is true of economic growth?
A) Countries with inclusive institutions are likely to grow faster than countries with extractive institutions.
B) In comparison to countries with extractive institutions, economic growth in countries with inclusive institutions is more likely to stagnate in the long run.
C) Countries with extractive institutions are likely to grow faster than countries with inclusive institutions.
D) Countries with extractive institutions are likely to grow at the same rate as countries with inclusive institution.
Question 2
Refer to the scenario above. If Sarah is optimizing in differences, then which of the following statements is true?
A) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days.
B) An optimizer will rent the hotel room for three days if the cost of staying for the first two days is less than the cost of staying for the third day.
C) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the benefits of staying for the first two days.
D) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the cost of staying for the third day.
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