Explain the extensive economic role of government within a ...

[mwit1967]

Explain the extensive economic role of government within a developing country.
 
  What will be an ideal response?

Question 2

A production subsidy combined with free trade
 
  A) has the same deadweight costs as a tariff.
  B) has only consumption deadweight costs.
  C) has only production deadweight costs.
  D) None of the above.

[otokexnaru]

Answer to Question 1

An open question. Students should include 2 of the following in their answer along with discussion:
(1 ) Restrictions on international trade
(2 ) Government control over large industrial firms
(3 ) High level of government consumption as a share of GNP
(4 ) Strict management of exchange rates; limit exchange rate flexibility

Answer to Question 2

C

[mwit1967]

Thank you

[otokexnaru]

No problemo