Advocates of Dependency Theory Assert That

question 18

Multiple Choice

Advocates of dependency theory assert that

• A) poor countries are hampered from participating in free trade because of a lack of transportation infrastructure.
• B) the high rate of poverty in poor countries is attributed to underdeveloped markets and the lack of property rights.
• C) trade based on comparative advantage benefits developed countries at the expense of poor countries.
• D) the key reason why poor nations have been slow to industrialize is because of persistent misallocation of resources.

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Definitions:

Utility Functions

Represent mathematical models that quantify an individual's preference for certain bundles of goods or services under conditions of scarcity.

Public Good

An item or resource that cannot be withheld from anyone and whose consumption by one individual does not diminish its accessibility to others, characterized by being both non-excludable and non-rival.

Private Good

A product or service that is typically consumed by the purchaser and cannot be used or consumed by others.

Utility Function

A mathematical representation in economics depicting the relationship between consumption choices and levels of satisfaction or happiness.