If a nation is going to achieve and sustain a high rate of economic growth, it must
A) prohibit low-wage foreign producers from supplying goods to the domestic market.
B) have an abundant domestic supply of low cost energy resources.
C) have a mechanism capable of attracting savings and channeling them into wealth-creating projects.
D) impose regulations that will limit the intensity of competition among domestic firms.

Question

Quizplus · Accepted Answer

A mechanism capable of attracting savings and channeling them into wealth-creating projects is crucial for achieving and sustaining high economic growth. This can be done through financial institutions such as banks, stock markets, and venture capitalists, which can provide funding to entrepreneurs and businesses with innovative ideas to expand their operations and create new jobs. A prohibition on low-wage foreign producers or regulations limiting competition may have short-term benefits, but in the long-run, they can impede economic growth by limiting consumer choice and reducing incentives for firms to innovate and cut costs. While an abundant domestic supply of low-cost energy resources can be helpful, it is not necessarily a decisive factor in achieving high economic growth.

If a Nation Is Going to Achieve and Sustain a High