Data on Trade Barriers and the Growth of Per Capita

question 90

Multiple Choice

Data on trade barriers and the growth of per capita GDP indicate that

• A) there is no link between the degree of a country's trade openness and its economic growth.
• B) more open economies have grown more rapidly than those that have imposed substantial barriers restricting trade.
• C) economies that have imposed high trade barriers have, on average, grown more rapidly than economies that are more open to international trade.
• D) countries with higher trade barriers have been able to achieve higher levels of per capita GDP than those that are more open to international trade.
• E) both c and d are correct.

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Definitions:

Rent

A regular payment made by a tenant to an owner for the use of the owner’s building, land, or other property.

Nominal Interest Rates

The interest rates before taking inflation into account, often quoted by financial institutions.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the true yield on an investment.

Irving Fisher

An American economist known for his contributions in the fields of economics and statistics, including the theory of interest and the Fisher equation.