What type of economic policy did Mexico follow from the end of World War II until the 1980s? Describe the three-stage strategy that supporters of this policy emphasized. What was the outcome of these policies for Mexico's manufacturing sector?
What will be an ideal response?
Import substitution industrialization (ISI), which emphasized self-sufficiency over trade and the substitution of domestic manufacturing industries for imports. First, the nation begins producing simple consumer nondurable products, then it shifts to more complex consumer goods and intermediate industrial goods. Finally, the nation is able to produce more complex industrial goods. Protection from competition meant that Mexico's manufacturing sector wasn't competitive.
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Which of the following may not be true for "multiple exchange rates"?
A) They are a form of protectionism. B) They try to improve a country's BOP. C) They use different exchange rates for different international transactions. D) They are less costly to administer than floating exchange rates.
The demand curve facing a monopolist: a. is the same as its marginal revenue curve
b. is perfectly elastic. c. is perfectly inelastic. d. is less elastic than a perfectly competitive firm's demand curve.
Figure 33.2 illustrates Lorenz curves for four different economies. For which economy would the lowest 20 percent of families receive the smallest share of total income?
A. A. B. B. C. C. D. D.
Recall the scenario from the text: The city of Logan Square needs $40 million for a network of streetlights. There are 20,000 residents in the Logan Square neighborhood, meaning the cost for each resident is $2,000 . Psychiatrist Denise Miller refuses to donate $2,000 towards the project. This is an example of the problems encountered with
a. consumer goods b. capital goods c. rival goods d. public goods e. private goods