Why Do More Corrupt Countries Have Lower Levels of GDP

question 38

Multiple Choice

Why do more corrupt countries have lower levels of GDP per capita?

• A) They all have no rule of law.
• B) They all have higher than average taxes.
• C) Government corruption damages entrepreneurs' incentives to produce and create wealth.
• D) They all follow the doctrine of communism.

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Definitions:

Low-Cost Strategy

A competitive strategy focusing on becoming the lowest cost producer in an industry to offer products or services at the lowest price possible to consumers.

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Service Firms

Companies that provide intangible products or services to customers.