Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 10

The small nation of Movieheim wants to develop a film industry. It is considering two options for doing so:
Option A: Reimburse relocation expenses for firms and give tax breaks to acting schools, film studios, digital artists, etc., to encourage them to work together and share ideas.
Option B: Make the purchase and exhibition of foreign films illegal for the next 10 years. What would development economists call each of these options? Which is more likely to encourage long-term economic development, and why?