Which of the Following Policy Options Is Likely to Be

question 14

Multiple Choice

Which of the following policy options is likely to be most successful in getting a poor country out of the poverty trap?

• A)expansionary fiscal policy
• B)expansionary monetary policy
• C)labor market policies
• D)programs to limit population growth
• E)investment subsidies

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Definitions:

Jack-of-all-trades

An individual skilled in many different areas, capable of performing competently in a variety of tasks or professions.

Net Exports

The difference between a country's total value of exports and total value of imports. If exports exceed imports, net exports are positive; if imports exceed exports, net exports are negative.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's total economic output.

Imports

Goods or services that are brought into a country from abroad for sale.