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:

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Isoquants

Curves that represent the combinations of inputs that yield the same level of output, used in production theory.

Perfectly Substitutable

Products or services that can be used in place of one another without any loss of utility or value to the consumer, often influencing competitive markets.

Inputs

Resources used in the process of production, including labor, capital, materials, and energy.