Which of the Following Is True

question 50

Multiple Choice

Which of the following is true ?

• A) Nations achieve high rates of economic growth primarily because of their natural resource endowments.
• B) Human and physical capital investments are largely irrelevant to economic growth.
• C) Poor nations grow slowly because they do not have access to modern technology.
• D) A favorable political environment attracts more investment in human and physical capital.

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Definitions:

Liquidation Proceeding

A legal process in which a company's assets are distributed to claimants, conducted when the company is insolvent and unable to meet its debt obligations.

Priority Claims

Claims in bankruptcy that are given precedence over other debts, often due to their importance like wage or tax claims.

Secured Creditors

Creditors who have a legal interest, or lien, in the debtor's assets or property as collateral for the debt, giving them a higher priority over unsecured creditors in case of default.

Preferential Payment

A payment made to a creditor before others in the context of bankruptcy, which often must be paid back if found to unfairly favor one creditor over others.