In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market.
B. decrease growth because they slow the growth of capital.
C. increase growth because they stop exploitation by foreigners.
D. decrease growth because they cause inflation.
Answer: B
Economics
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A) if they are willing to take a loss on the goods produced. B) if there are increasing returns to scale and export of the surplus is possible. C) when arbitrage is possible. D) if they are producing seasonal products.
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A decrease in demand for a good will lead to a decrease in the price of the good, but an increase in the quantity supplied.
a. true b. false
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