In 1950, Nicaragua and Brazil had roughly the same size economies. Now, Brazil's economy is almost five times as large as Nicaragua's. This is most likely because Brazil had better resources and technology. Brazil had no public school system and used private schools instead. Nicaragua had higher taxes and government spending. Nicaragua had many more government regulations.

In 1950, Nicaragua and Brazil had roughly the same size economies. Now, Brazil's economy is almost five times as large as Nicaragua's. This is most likely because Brazil had better resources and technology. Brazil had no public school system and used private schools instead. Nicaragua had higher taxes and government spending. Nicaragua had many more government regulations.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter2: The Economy: Myth And Reality

Section: Chapter Questions

Problem 1DQ

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