A Suggested Policy for Industrially Advanced Countries to Adopt to Encourage

question 138

Multiple Choice

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be

• A)cutting debt relief for DVCs.
• B)directing foreign aid to the more affluent DVCs.
• C)restricting immigration of low-skilled workers from DVCs.
• D)reducing tariffs and import quotas on labor-intensive products.

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Definitions:

Government Intervention

Actions taken by a government to influence its economy, which can include regulations, subsidies, and tariffs.

Market Economy

An economic system where supply and demand from private enterprises and consumers dictate the production of goods and services.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace where individuals pursuing their own interest inadvertently benefit society at large.

Government Policies

Measures and regulations implemented by a government to influence economic, social, or administrative outcomes in the country.