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Does the degree of government control of markets explain the rate of economic growth in each country? Give reasons to support your statement.
The type of market alone is not sufficient to explain differences in the rate of economic growth. Brazil, Chile, Mexico, and Tanzania all have the same type of system, but differ greatly in their rates of growth. China, with the most government control, had the highest growth rate, while the United States, with the least government control, had the next-highest growth rate.
- Do you think there is a single factor that explains the differences in economic growth, or that a number of factors influence economic growth?
If there is a single factor, that factor is not the amount of government control over the market.
- What other factors might influence differences in the rates of economic growth?
Some factors might be the degree of industrialization in place in the country, availability of capital, availability of skilled labor, natural resources, amount of trade, etc.
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