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A Country with a Relatively Low Level of Real GDP

question 19

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A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?


Definitions:

Moral Intensity

The degree to which a situation or decision has ethical significance, influencing individuals’ moral judgments and behaviors.

Utilitarianism Rule

A principle in ethics stating that the best action is the one that maximizes utility, often defined in terms of the wellbeing of sentient entities.

MARS Model

A framework describing four factors—Motivation, Ability, Role perceptions, and Situational factors—that affect individual behavior and performance.

Individual Behavior

Actions, mannerisms, and reactions of a single person, influenced by their environment, personality, emotions, and values.

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