Describe ways that governments can promote faster economic ...

[Marty]

Describe ways that governments can promote faster economic growth.
 
  What will be an ideal response?

Question 2

Which of the following is an explanation for the existence of trade restrictions?
 
  A) Tariffs generate revenue for the government.
  B) rent seeking
  C) inefficient quotas
  D) Both answers A and B are key explanations.

[Pamela.irrgang@yahoo.com]

Answer to Question 1

Policies for increasing the economic growth rate are 1 ) Stimulate saving (for instance, tax incentives could be directed at increasing saving which will then increase the capital stock); 2 ) Stimulate research and development (inventions can be copied, so government subsidies can lead to more inventions that spread throughout the economy); 3 ) Encourage international trade (free international trade encourages economic growth because free trade extracts all the possible gains from specialization and exchange); 4 ) Improve the quality of education (education creates benefits beyond the ones enjoyed by the students who receive education).

Answer to Question 2

D

[Marty]

YES! Correct, THANKS for helping me on my review

[shewald78]

Thanks for the timely response, appreciate it