1. Systems and equipment for communication, transportation, and sanitation make up

a. Private goods

b. Capital infrastructure

c. Government services

d. Human capital

2. In developing countries, on average, nearly ___ of the labor force is employed in the agricultural sector; compared to 3% in industrial market economies.

a. 90%

b. 70%

c. 50%

d. 30%

3. Which is NOT an example of “Rules of the Game” or economic institutions?

a. A handshake to seal a deal

b. Well-defined property rights

c. Government ownership of resources (under communism and sometimes socialism)

d. Firms’ increase of supplies when shortages occur