Asked by chisom chikezie on May 27, 2024
Verified
If a rich country reduced subsidies to domestic producers of goods that poor countries have a comparative advantage producing, the standard of living in these poor countries would likely rise.
Subsidies
Financial support provided by governments to individuals, organizations, or industries to encourage certain activities or reduce costs.
Comparative Advantage
The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its competitors.
Standard Of Living
The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.
- Understand the influence of savings and investment rates on the expansion of the economy.
- Understand the impact of international and local investments on a nation's economic growth.
Verified Answer
VN
victory nana qwameyJun 03, 2024
Final Answer :
True
Explanation :
Reducing subsidies in the rich country would make goods from poor countries more competitive in global markets, likely increasing exports and income for these countries, thus potentially raising their standard of living.
Learning Objectives
- Understand the influence of savings and investment rates on the expansion of the economy.
- Understand the impact of international and local investments on a nation's economic growth.