The Low Per Capita Outputs of the DVCs Are Explained

question 276

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.

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Definitions:

Induced Consumption

Induced consumption is the portion of consumer spending that increases with an increase in disposable income.

Disposable Income

The finance available to households for expenditures and saving after reducing income taxes.

Disposable Income

Money that households can earmark for spending and saving after income taxes are considered.

Consuming Too Much

Consuming too much refers to the act of using or buying more resources or products than are needed, often leading to waste and potential environmental and economic consequences.