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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 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?
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?
Explanation
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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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