When a Developing Country Relies on Export Promotion, _____

question 4

Multiple Choice

When a developing country relies on export promotion, _____

• A) it concentrates on producing for its domestic market.
• B) it builds its technological and educational base and then makes complex products for export.
• C) domestic producers have sufficient protection, which makes them inefficient.
• D) its government must intervene more in markets.
• E) it begins with relatively simple products.

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Definitions:

Net Taxes

The net amount of money paid to the government through taxes after deducting any government transfers or subsidies received.

Supply-Side Economics

An economic theory proposing that by lowering taxes and reducing regulations to stimulate production, economic growth is achievable.

Aggregate Supply

The overall volume of goods and services that companies in a nation expect to provide for purchase during a certain timeframe.

Government Policies

Guidelines, regulations, or laws implemented by a government to influence the economy or meet social goals.