Suppose you wanted to argue for a more interventionist economic policy by your government. Which of these facts, if true, would best support your case?
a. The fastest-growing businesses in your country are the ones that received subsidies.
b. When tariffs were lowered in the past, your country experienced rapid economic growth.
c. Government workers in your country earn higher average wages than private-sector workers.
d. The inflation rate in your country went down when interest rates on government loans went up.
Question 2
Suppose that you are the finance minister of a developing country that sees Taiwan as a good model of economic success. If you subscribe to the institutional approach to political explanation, you are likely to recommend _____.
a. strengthening your country's bureaucracy
b. adopting the approach of the Washington Consensus
c. increasing tariffs to incentivize domestic consumption
d. forging strong ties among your country's industrial leaders
