What Is an Effect of Outward-Oriented Policies

question 65

Multiple Choice

What is an effect of outward-oriented policies?

• A) Some countries gain and some lose from trade.
• B) They have generally led to high growth for the countries that pursued them.
• C) They impede growth in poor countries, but create more jobs.
• D) They increase GDP, but also increase overall unemployment.

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Definitions:

Framing Effect

A cognitive bias where people react differently based on the way information is presented to them, particularly in decisio-making scenarios.

Category Hierarchies

Organizational systems that classify groups or objects into ranked categories based on shared characteristics or importance.

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is assessed based on how typical the object seems of the category.

Confirmation Bias

The inclination to seek out, comprehend, prioritize, and recall facts in a manner that corroborates one's established beliefs or conjectures.