Which of the Following Correctly Identifies the Difference Between Export

question 114

Multiple Choice

Which of the following correctly identifies the difference between export promotion and import substitution as approaches to economic growth?

• A)Export promotion is based on the infant industry argument,while import substitution is based on the level playing field argument.
• B)Export promotion requires more government intervention in the form of tariffs and quotas,while import substitution requires minimum government intervention.
• C)Export promotion boosts domestic efficiency,while import substitution leads to inferior products being supplied by domestic producers and lowers efficiency.
• D)Export promotion results in the replacement of low-cost foreign goods with high-cost domestic goods,while import substitution leads to the replacement of high-cost foreign goods with low-cost domestic goods.
• E)Export promotion results in a decrease in the per capita GDP of a country,while import substitution results in an increase in the per capita GDP of a country.

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Definitions:

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas within its layers.

User Cost

The economic cost of using a good or service, including the opportunity cost of not having the good available for future use.

Extraction Cost

The expenses associated with the removal of resources or raw materials from the earth, such as mining, drilling, or quarrying.

Quantity of Gold Bars

The quantity of gold bars represents the physical amount of gold, measured in bars, that an entity possesses or trades.