Author Question: Suppose that a good that was formerly an import becomes an export, perhaps after an import ... (Read 84 times)

sabina · **on:** Jun 30, 2018

Suppose that a good that was formerly an import becomes an export, perhaps after an import substitution and export promotion strategy. How is this change reflected in the production possibility frontier?

What will be an ideal response?

Question 2

Conditions of today's developed countries at the start of their industrialization differ from conditions in the developing world in that

a. population growth rates were higher.
b. more advanced technology was available.
c. there were more opportunities for development assistance.
d. none of the above.

ecox1012 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The good that was on the import axis, now is found on the export axis. Leaving the goods on the same axes as before, with the import on the y-axis, the ppf becomes more bowed
out toward and further up this axis.

Answer to Question 2

D