A Country with a Relatively Low Level of Real GDP

question 19

Multiple Choice

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?

• A)both the first and the second
• B)the first but not the second
• C)the second but not the first
• D)neither the first nor the second

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Definitions:

Regression Slope Coefficient

A measure in regression analysis that quantifies the change in the dependent variable for a one unit change in an independent variable.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a certain level of confidence.

Y-Intercept

The point at which a line crosses the y-axis of a graph, representing the value of the dependent variable when all independent variables are zero.

Torque

A rotational force applied to an object, calculated as the product of the force and the distance from the point of application to the axis of rotation.