Which of the Following Would Be Most Likely to Cause

question 18

Multiple Choice

Which of the following would be most likely to cause the per capita income of less-developed countries to rise?

• A) Development of strong labor unions.
• B) More rapid population growth.
• C) Investment expenditures that enhance the human capital of labor force participants.
• D) An international minimum wage law.

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Definitions:

Demand

The capacity for purchasing goods or services that people demonstrate readiness and financial ability for, at diverse price levels, during a certain timeframe.

Law Of Demand

The economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Income Increases

A situation wherein individuals or entities experience a rise in their earnings or profits over a certain period.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.