Question

What is the effect of banning imports in order to encourage the development of domestic industries? Exports increase o People pay more for goods and services, because they are produced by less efficient domestic manufacturers, who are protected from foreign competition. People pay less for goods and services, because they are produced domestically. The quality of goods and services improves, because they are produced domestically rather than imported from abroad, (20) The cycle of poverty in which emerging countries are caught involves o low productivity, which leads to high prices, low consumption, and poverty. low investment, which leads to low consumption, low prices, and low GDP. low per capita GDP, which leads to low demand, low savings, low investment, and low productivity. o a low level of natural resources, which leads to low demand, low savings, low investment, and low productivity. (21) Per capita GDP is the level of o productivity divided by the level of investment. spending divided by the level of investment. output divided by the population. output divided by the level of prices. (22) Policies that can break the cycle of poverty include investing in foreign technology and providing incentives for saving, providing basic health care and increasing birth rates. increasing wages and output. increasing imports and maintaining political stability.

Answer 1

ANSWERS

19 People pay more for goods and services because they are produced by less efficient domestic manufacturers, who are protected from foreign competition.

Banning of imports is basically to help infant industries to grow into a powerful competitior. It will help domestic industies from the competion outside a country.

20 low per capita GDP, which leads to low demand, low savings, low investment, and low productivity.

21 output divided by population.

22  increasing wages and output.

If we increase wages and output higher savings and investments will lead to breakage of poverty.