You Are an Economic Consultant and Have Been Contacted by an Official

question 9

Multiple Choice

You are an economic consultant and have been contacted by an official from a developing country.She tells you that her country's economy is currently growing at 2 percent per year.She asks you how long it will take for her country's economy to double in size; you tell her it will take 35 years.She then asks you what the government can do to shorten the time necessary to double the size of the country's economy.What should you tell her?

• A) Cut taxes and government spending.
• B) Encourage the development of growth-positive institutions.
• C) Increase barriers to international trade.
• D) Immediately halt all immigration.
• E) Suspend the rule of law.

---

Definitions:

Erasmus

Desiderius Erasmus of Rotterdam, a 15th-16th-century Dutch Renaissance humanist, Catholic priest, social critic, teacher, and theologian known for his works on theology, education, and for advocating for religious tolerance.

In Praise of Folly

A satirical essay written by Desiderius Erasmus, critiquing aspects of his society with humor and ironic wit.

Dutch Philosopher

A philosopher hailing from the Netherlands, known for contributing to a wide range of philosophical discussions and theories.

Significance

The quality of being worthy of attention; importance.