GROWTH DEVELOPMENT CHILD
GROWTH AND DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Private Investment
|
|
|
Public Expenditure
|
|
|
State Planning
|
|
|
Trade Barriers
|
Detailed explanation-1: -The government (1) provides the legal and social framework within which the economy operates, (2) maintains competition in the marketplace, (3) provides public goods and services, (4) redistributes income, (5) cor-rects for externalities, and (6) takes certain actions to stabilize the economy.
Detailed explanation-2: -Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology. Highly developed countries have governments that focus on these areas.
Detailed explanation-3: -Also, they find large differences in the growth effect of FDI across countries. Thus, the overall picture that emerges from these studies is that FDI tends to have a positive effect on economic growth in developing countries, but this growth effect is very heterogeneous.