Data on Trade Barriers and the Growth of Per Capita

question 90

Multiple Choice

Data on trade barriers and the growth of per capita GDP indicate that

• A) there is no link between the degree of a country's trade openness and its economic growth.
• B) more open economies have grown more rapidly than those that have imposed substantial barriers restricting trade.
• C) economies that have imposed high trade barriers have, on average, grown more rapidly than economies that are more open to international trade.
• D) countries with higher trade barriers have been able to achieve higher levels of per capita GDP than those that are more open to international trade.
• E) both c and d are correct.

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Definitions:

Note Payable

A written agreement where one party promises to pay another a definite sum of money at a specified future date or on demand.

Current Assets

Assets likely to be converted into cash within a year, such as inventory, accounts receivable, and cash and cash equivalents.

Current Liabilities

Short-term financial obligations that are due within one year or within the operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.