Although Initially Successful in Achieving Impressive Economic Growth, Import-Substitution Ultimately

question 64

Multiple Choice

Although initially successful in achieving impressive economic growth, import-substitution ultimately

• A) was proven to be incapable of sustaining economic growth due to resistance from labor groups.
• B) led to inefficient and uncompetitive industries due to their dependence on state subsidies.
• C) was ruled in violation of the rules of the World Trade Organization.
• D) was proven to be incapable of sustaining economic growth due to resistance from the bourgeoisie.
• E) was proven to be incapable of sustaining economic growth due to resistance from foreign capitalists and multinational corporations.

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Definitions:

Public Expenditures

Money spent by the government on various services and projects for the public good.

Ability-to-Pay Principle

A principle in taxation that states taxes should be levied according to a taxpayer's ability to pay, typically implying higher taxes for those with higher income.

Tax Burdens

The total amount of tax payments borne by individuals or organizations, often discussed in terms of its impact on economic behavior or well-being.

Taxation Theory

Taxation Theory explores the underlying principles and effects of taxes on the economy, including how taxes impact consumer behavior, efficiency, and income distribution.