Economic Growth in the DVCs Might Increase If IACs

question 97

Multiple Choice

Economic growth in the DVCs might increase if IACs

• A)reduce their tariffs and import quotas.
• B)encourage more immigration of highly skilled DVC workers.
• C)outlaw direct private investment abroad by IAC corporations.
• D)discourage capital flight to the DVCs.

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Definitions:

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.

Perceived Budget Line

A graphical representation of all possible combinations of goods that a consumer can purchase with a given budget, based on their perception of available resources.

Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences, the values of economic variables will not change.