Trade Cannot Be an Engine of Growth for Today's Developing

question 26

Multiple Choice

Trade cannot be an engine of growth for today's developing nations because:

• A) the income elasticity for many of their exports is less than 1
• B) there are many substitutes for their goods.
• C) technical advances have increased the the raw-material content of many products
• D) there are too many trade restrictions.

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Definitions:

Nonrenewable Energy Sources

Energy resources such as coal, oil, and natural gas that cannot be replenished in a short period of time and will eventually deplete.

Scarce Resources

Resources that are limited in availability and can be used in the production of goods and services.

Tradeoffs

The compromise or sacrifice of one thing in order to obtain another, often used in discussions of economic policy and individual choices.

Pollution Regulations

Laws and rules designed to control or reduce the pollution released into the environment, protecting public health and ecological balance.