Other things equal,the likelihood that a country will experience a relatively-high level of income is greater if the country
A)pursues inward-oriented policies.
B)has natural seaports.
C)minimizes the role of the courts in its economy.
D)enacts policies to encourage consumption and discourage saving.

Question

Quizplus · Accepted Answer

Having natural seaports can facilitate international trade and commerce which can contribute to higher incomes. Inward-oriented policies (A) tend to limit trade and can lead to less economic growth. Minimizing the role of the courts (C) can lead to less certainty and security in contracts, which can deter investment and growth. Encouraging consumption and discouraging savings (D) can lead to short-term growth but can also lead to inflation and economic instability in the long run.

Other Things Equal,the Likelihood That a Country Will Experience a Relatively-High