Write an essay that compares and contrasts primary-export-led development policies with import-substitution policies.
What will be an ideal response?
Question 2 - Imperfectly competitive firms have a demand curve that ________ and a marginal revenue curve that ________ and is ________ the demand curve.
A) slopes downward; slopes downward; below
B) is horizontal; is horizontal; the same as
C) slopes downward; is horizontal; above
D) is horizontal; slopes downward; below
E) slopes downward; slopes downward; the same as
Question 3 - In the HO model, the production possibility frontier is bowed out due to the assumption of
A) identical tastes.
B) different factor intensities in the production of the two goods.
C) increasing returns to scale.
D) Two of the above.
Question 4 - Other nations had tried economic union in the past, and since adopting a common currency had shown economic benefits for them, the nations of Europe decided to try it too.
Indicate whether the statement is true or false
Question 5 - Sophisticated theoretical arguments supporting import-substitution policies include
A) terms of trade effects.
B) scale economy arguments.
C) learning curve considerations.
D) the problem of appropriability.
E) domestic market failure arguments.
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