Capital Flight Is a Problem Facing DVCs That Involves the

question 263

Multiple Choice

Capital flight is a problem facing DVCs that involves the

• A)difficulty of sustaining skilled workers in the government sector of the DVC economies.
• B)transfer of private savings from DVCs to IACs.
• C)flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities.
• D)movement of capital goods from IACs to DVCs to avoid taxes.

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Definitions:

Capital

Assets or resources that are used in the production of goods and services, including physical assets like machinery and buildings, as well as financial resources.

Marginal Revenue Product

The extra revenue generated by employing an additional unit of a factor, such as labor or capital.

Perfect Competitor

A theoretical market structure where numerous small firms sell identical products, and no single seller can influence the market price.

Monopolist

A monopolist is a sole provider of a good or service in a market, having the power to influence the price and quantity of the product.