Which of the Following Is Not a Reason Why Government

question 164

Multiple Choice

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

• A)the infrastructure provided by government
• B)the abundance of entrepreneurs who need to be regulated
• C)the need to encourage saving and investment in the economy
• D)the provision of law and order so that commerce can flourish

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Definitions:

Domestic Inflation

The speed at which the overall price level of goods and services increases, leading to a decrease in the country's purchasing power.

Trade Deficits

A condition in which a nation's expenditures on imported goods and services surpass its earnings from exports, resulting in a trade deficit.

Indebtedness To Foreigners

The total amount of money that a country owes to foreign creditors.

Current Consumption

The purchases of goods and services for immediate use, as opposed to saving or investing for future use.