According to Modernization Theory

question 125

Multiple Choice

According to modernization theory

• A) economic development is dependent on technological change.
• B) governments should make economic policies that, when necessary, restrict business activities and free trade.
• C) poor countries really have no control over being poor.
• D) poor countries will remain poor.

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Definitions:

Accounting Equation

The fundamental formula representing the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).

Asset

An economic resource owned or controlled by an individual or business, expected to provide future benefits.

Liability

Any financial debt or obligation that a company owes, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.