The Low Per Capita Outputs of the DVCs Are Explained

question 262

Multiple Choice

The low per capita outputs of the DVCs are explained by

• A) insufficient saving and investment.
• B) overinvestment in human capital.
• C) slow population growth.
• D) excessively rapid technological advance.

---

Definitions:

Neocolonialism

The economic and political strategies by which powerful nations indirectly maintain or extend their influence over other countries, often through economic pressures or cultural dominance.

Capital-Using Technology

An improvement in technology that requires the use of a greater amount of capital to produce a specific quantity of a product.

Capital-Saving Technology

An improvement in technology that permits a greater quantity of a product to be produced with a specific amount of capital (or permits the same amount of the product to be produced with a smaller amount of capital).

Capital Consumption

The diminution of physical capital's value over time due to use, wear and tear, or obsolescence, also known as depreciation.