The economic development minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. What contributes to low growth?
A) strong private property rights
B) tariffs and quotas
C) encouraging foreign investment
D) low population growth

Question

Quizplus · Accepted Answer

Tariffs and quotas can restrict international trade and limit the flow of goods and services, which can ultimately lead to lower economic growth. This can stifle competition and limit access to new technologies and ideas from other countries. Strong private property rights and encouraging foreign investment can actually promote growth, and low population growth can have mixed effects depending on other economic factors.

The Economic Development Minister of a Country Has a List