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:

Law of Averages

A layman's term often misused to suggest that a future event is likely to occur to balance out a statistical deviation, though not a formal statistical principle.

Independent Events

Two or more events whose outcomes do not affect each other's probabilities of occurring.

Positive Difference

The result of subtracting a smaller number from a larger number, ensuring a non-negative result.

Fair 6-Sided Dice

A classic dice with six faces, each showing a number from one to six, where each number has an equal likelihood of appearing on a roll.