An example of policies designed to encourage the development of new industries whose products can be readily exported would be
A. imposing tariffs on imports of skilled-labor-intensive goods.
B. taxing exports of skilled-labor-intensive goods.
C. subsidizing imports to the domestic market.
D. providing subsidies to domestic industries that exploit the country's comparative advantage.
Answer: D
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"When you purchase $1,000 of stock in Microsoft, your purchase is an investment and hence is part of GDP." Is this assertion correct? Explain your answer
What will be an ideal response?
Forward contracts are of limited usefulness to financial institutions because
A) of default risk. B) it is impossible to hedge risk. C) they are relatively inflexible. D) of interest-rate risk.
A jar has 20 red jelly beans and 40 black jelly beans. If you pick a red jelly bean and put it back, what are the odds of picking a red jelly bean next?
A) 20/40 B) 20/60 C) 40/60 D) 0
Answer the following statements true (T) or false (F)
1. The period known as the "Industrial Revolution" began in the United States in the late 1800's. 2. Citizens living in the richest nations today have material standards of living that are on average more than 50 times higher than people living in the poorest countries. 3. Savings are generated when current consumption is less than current output. 4. Buying 100 shares of Google stock would be an example of economic investment 5. Economists use the word investment to refer to the purchase of assets such as stocks, bonds, and real estate.