#900643
Assume a poor developing country has a relatively high population growth and has high barriers to trade and capital movements. The government wants to increase the level of welfare of the average citizen. Which of the following suggestions to the government are correct?
Варианты ответа:
  • import lots of capital goods while protecting domestic industries; this brings new technology into the country at a relatively low price and increases TFP
  • open up the capital market to increase the level of funds for investment while maintaining the trade barriers that protect the domestic industries
  • lower trade barriers in order to produce according to the comparative advantages of the country (efficiency gains) and open up the capital market while improving the supervision by the central bank
  • another barrier to be incorporated