Which of the Following Is Required for a Country to Successfully

question 24

Multiple Choice

Which of the following is required for a country to successfully pursue an import-substitution strategy?

• A) Imposition of protective tariffs
• B) Policies to encourage foreign investment in order to facilitate rapid technology transfer
• C) A flexible exchange rate system
• D) A liberal immigration policy to increase the size of the labor force

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Definitions:

Long-Run Cost Curve

A graphical representation showing the lowest cost at which any given level of output can be produced in the long run, where all inputs are variable.

Industry Supply Curve

A graph that shows the quantity of goods that producers are willing and able to sell at different price levels in a specific industry.

Marginal Costs

Marginal costs are the additional costs incurred to produce one more unit of a product or service.

Total Cost Function

Describes the complete cost of producing a given level of output, summing up all variable and fixed costs associated with production.