Question

Please classify each policy according to whether it tends to foster or inhibit economic growth Policies that tend to foster economic growth Policies that tend to inhibit economic growth

Answer 1

Answer:

Policies that tend to foster economic growth	Policies that tend to inhibit economic growth
Establishing a stable national government that promotes the rule of law and sets clear expectations for business behavior.	Establishing trade barriers to protect domestic industries
Clearly defining and enforcing property rights that extend to all members of the society.
Creating public infrastructure including communication, education, medical services, and sanitation and transportation facilities.
Encouraging multinational firms to establish a business presence in the country

Explanation: A stable government promotes economic growth by ensuring consistency and predictability of policies. Clear definition and enforcement of property rights incentivize economic activities. Public infrastructure makes it favourable for businesses as well as individuals to indulge in more economic activities. In addition, increased multinational activities also promote economic growth.

Trade barriers lower economic growth in the long-run.