Define import substitution. Evaluate the success of import substitution strategies in developing countries
What will be an ideal response?
Import substitution is an industrial strategy that favors developing local industries that can manufacture goods to replace imports. Most economists would argue that import substitution has not been successful. Import substitution policies tend to create inefficiency. Industries that are inefficient are protected from foreign competition. Import substitution policies often encourage capital-intensive production techniques and therefore create relatively few jobs while encouraging the use of expensive domestic products.
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If indifference curves and budget lines are used to analyze consumer choice, an inferior good will
A. escape detection when income rises. B. be easily identified because the quantity purchased will fall as income rises. C. be easily identified because the quantity purchased will rise as income rises. D. be easily identified because it will change the slope of the budget line. E. escape detection because this model does not show that relationship.
Refer to Table 18-3. The table above outlines the rankings of three members of the U.S. Senate on three spending alternatives
Assume that Congress can spend additional revenue on only one of the three spending alternatives and that Bart, Lisa, and Maggie, all members of the Senate, participate in a series of votes in which they are to determine which of the spending alternatives should receive funding. Three votes will be taken: (1 ) Immigration Reform and Unemployment Benefits (2 ) Immigration Reform and Social Security Reform and (3 ) Unemployment Benefits and Social Security Reform.
Tractors, shovels, copy machines and computer programming expertise are all examples of scarce resources
a. True b. False Indicate whether the statement is true or false
America's prosperity and economic growth is secure for the foreseeable future
a. True b. False Indicate whether the statement is true or false