Question

5. Economic growth and public policy

Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama.

This is an example of foreign   investment in the United States.

Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply.

Protecting property rights and enforcing contracts

Imposing restrictions on foreign ownership of domestic capital

Pursuing inward-oriented policies

Increasing taxes on income from savings

What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting?

Improvements in worker health from better nutrition

Improvements in the protection of property and enforcement of contracts through the maturation of the civil and criminal justice systems

Improvements in technology from the incentives created by a better patent system

Inward-oriented policies that protect domestic firms from foreign competition

Answer 1

5. Economic growth and public policy Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama This is an example of foreign direct investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Protecting property rights and enforcing contracts Imposing restrictions on foreign ownership of domestic capital Pursuing inward-oriented policies Reason: All these will help economies grow and increase production and productivity What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting? Improvements in worker health from better nutrition Reason: He believed improving worker health by providing them with better nutrition will help increase their productivity and make them better performers, leading to an increase in total production and thus long run economic growth.