Sophisticated Theoretical Arguments Supporting Import-Substitution Policies Include

question 26

Multiple Choice

Sophisticated theoretical arguments supporting import-substitution policies include

• A) terms of trade effects.
• B) scale economy arguments.
• C) learning curve considerations.
• D) the problem of appropriability.
• E) domestic market failure arguments.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.

Short-Run

A period during which at least one input, typically capital, is fixed, influencing the flexibility of businesses to adjust to market changes.

Marginal-Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as the quantity of production changes.

Additive Manufacturing

A method that involves building items by depositing material in successive layers, widely referred to as 3D printing.