(A) Define the Five Types of "Production Effects" of Economic

question 11

Essay

(a) Define the five types of "production effects" of economic growth in a country and the five types of "consumption effects" of the economic growth. Then define the types of possible "overall" or "net" effects of the country's growth on the relative importance of the trade sector.
(b) Developing countries are often concerned that their terms of trade might deteriorate as economic growth occurs. In terms of the analysis of part (a) of this question, other things equal, what type(s) of growth must occur and what type of country ("large" or "small") must a developing country be in order for the country's terms of trade to deteriorate as the country grows? Explain.

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Definitions:

Relevant Goals

Objectives that are pertinent and directly relate to the desired outcome or mission of an individual or organization.

Goal Commitment

The determination and persistence of an individual or group to achieve a set of objectives or targets.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform or act based on the expected outcomes and the value they place on those outcomes.

Counseling

A supportive process that helps individuals to explore, understand, and overcome personal, social, or psychological challenges and difficulties.