Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 12 - Production and Growth - Questions For Review - Page 257: 6

Answer

Removing trade restrictions such as tariffs and quotas would lead to quick economic growth. Free trade allows for consumption beyond PPF. This is technically seen as improvement in technology.

Work Step by Step

The basis of this question is easy because free trade allows for specialization and greater outputs due to comparative advantage the hard part is identifying that this is not human or physical capital nor is it natural resources so it falls under technology category but yet this is not something that is clear and concise.
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