Which of the Following Is Not an Argument in Favor

question 74

Multiple Choice

Which of the following is not an argument in favor of inward-oriented strategies?

• A)A newly developing economy needs protection from foreign competition.
• B)Government restrictions are necessary to maximize the rate of economic growth.
• C)Deteriorating prices of primary products in relation to manufactured goods expose developing countries to increasingly unfavorable terms of trade.
• D)Developing countries should compete on the basis of comparative advantage.
• E)Economic growth requires rapid industrialization and a shift away from primary products.

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Definitions:

Tax

A required financial fee or another kind of duty enforced on a taxpayer by government authorities, designed to raise funds for government outlays and a range of public expenses.

Price-Elastic Supply

A situation where the quantity supplied of a good changes significantly as a result of changes in its price.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and fuel, to generate revenue or discourage consumption.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.