Seven Problems Facing Developing Countries That Make Their Path to Development

question 57

Essay

Seven problems facing developing countries that make their path to development difficult are: (a)Political instability, (b)Corruption, (c)Lack of appropriate institutions, (d)Lack of investment, (e)Inappropriate education, (f)Overpopulation, (g)Poor health and diseases.Briefly explain two of these problems,indicating how they make development difficult.

Analyze the relationship between MRP and the hiring decisions of firms.

Grasp the principle of derived demand in labor and resource markets.

Recognize the role of diminishing marginal productivity in determining labor demand.

Identify how resource pricing affects the allocation of resources and ultimately influences firm’s costs and profits.

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Definitions:

Negative Externalities

Costs experienced by someone who is not directly involved in the production or consumption of a good or service.

Positive Externalities

Benefits experienced by third parties or society at large as a result of an economic activity, without the third party incurring any cost.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce availability to others.

Consumer Surplus

The gap between what consumers are prepared and can afford to pay for a product or service, and what they end up paying in reality.