Nolivia Is a Small and Poor Nation, but Its Current

question 141

Multiple Choice

Nolivia is a small and poor nation, but its current president has a genuine desire to create more wealth for Nolivia citizens. The president has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Nolivia?

• A) Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia.
• B) Use foreign aid from other nations to purchase more tools and machinery.
• C) Establish a business environment that promotes and rewards entrepreneurship.
• D) Establish barriers to trade to protect Nolivia businesses from foreign competition.

---

Definitions:

Emergent Property

A characteristic or phenomenon that arises from the interaction and organization of individual components in a system, not predictable from the properties of the individual parts.

Market Equilibrium

The point at which the quantity of goods supplied equals the quantity demanded at a particular price.

Emergent Equilibria

The spontaneous attainment of stability within a complex system where individual components interact and adjust to changing conditions without central control.

Invisible Hand

A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions.