Why is import substitution so popular as a development strategy in poor nations?
a. Domestic firms will be producing better products.
b. It promotes free trade.
c. It provides infant industries a protected market.
d. It creates a competitive advantage for domestic firms.
c
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Suppose that the sub sandwich business is a competitive, constant-cost industry. An increase in demand for sub sandwiches, will, in the long-run lead to
a. an increase in price and industry output, but no increase in the output of existing firms. b. no increase in price, no increase in the output of existing firms but an increase in industry output because of new firms. c. no increase in price and an increase in industry output as each existing firm produces more. d. no changes in price, output of existing firms or the number of firms in the industry.
What behavior by central and private banks in euro zone countries created the conditions for the 2009 euro crisis?
What will be an ideal response?
In the short run both the monopolistically competitive firm and the perfectly competitive firm will charge a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
As of 2009, what was the last year that U.S. experienced deflation?
A) 1933 B) 1955 C) 1973 D) 1991 E) 2001