5. Economic growth and public policy Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign portfolio investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Protecting property rights and enforcing contracts Increasing taxes on income from savings Imposing restrictions on foreign ownership of domestic capital Providing tax breaks and patents for firms that pursue research and development in health and sciences In less developed countries, what does the term brain drain refer to?

5. Economic growth and public policy Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign portfolio investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Protecting property rights and enforcing contracts Increasing taxes on income from savings Imposing restrictions on foreign ownership of domestic capital Providing tax breaks and patents for firms that pursue research and development in health and sciences In less developed countries, what does the term brain drain refer to?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office
complex.
This is an example of foreign portfolio investment in Argentina.
Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply.
Protecting property rights and enforcing contracts
Increasing taxes on income from savings
Imposing restrictions on foreign ownership of domestic capital
✔Providing tax breaks and patents for firms that pursue research and development in health and sciences
In less developed countries, what does the term brain drain refer to?
Lower productivity due to a malnourished workforce
The emigration of highly skilled workers to rich countries
Rapid population growth that lowers the stock of capital per worker
Rapid population growth that increases the burden on the educational system

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