The Widening Gap Between Developed and Developing Nations Was Created

question 2

Multiple Choice

The widening gap between developed and developing nations was created by:

• A) Intrinsic differences between citizens, such as intelligence and race.
• B) Different rates of technological advances.
• C) Different levels of dependency on oil.
• D) Terrorism.

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Definitions:

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.

Market Price

The current value at which an asset or service can be bought or sold in an open market.

Economies of Scale

The economic benefits that businesses gain from their size of operations, where the expense per unit of production typically lowers as the scale increases.