Question

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. Which of the following contributes to low growth?A) tariffs and quotas. B) low population growth. C) encouraging foreign investment. D) strong private property rights.

Answer 1

Answer: Tariffs and quotas

Explanation:

Tariffs and quotas are firms of trade protectionism that are used to control the amount of goods brought into a country. While quotas are taxes on imports, quotas are limitation on the number of goods imported.

Tariffs and quotas will affect economic growth because when there's limitation to the amount of imports, will affect the gross domestic product negatively.