How do outward-oriented policies affect a nation's productivity?
Most economists believe that poor nations are better off pursuing outward-oriented policies that promote free trade. Countries that use their comparative advantage in trade are, in effect, helping themselves through the gains from trade in the same way that nations that develop new technology raise their standard of living. Hence, a country that eliminates trade restrictions will experience the same kind of economic growth that would occur after a major technological advance. Inward-oriented trade policies are akin to a country choosing to restrict the use of superior technologies.
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Which of the following would be an example of FDI?
A) A Brazilian investor buys German government bond. B) An American buys a new Swedish car. C) An Italian firm builds a plant in Nebraska. D) A Canadian investor buys a French equity.
Suppose you inherit the only spring of mineral water in an area and want to maximize profits from this costless product. You would ask your customers to bring their containers with them and:
a. charge them the highest price possible to sell some output. b. charge them the lowest price possible to sell as much as you can. c. ask them how much they would like to pay and accept it. d. charge the price at which MR is zero. e. charge the price at which MR is maximum.
The source of all four classic hyperinflations was high rates of money growth
a. True b. False Indicate whether the statement is true or false
Economic analysis indicates that high tax rates will
A) promote wasteful use of resources. B) retard capital formation. C) all of the above. D) reduce productive activity.