Less-Developed Countries Are Poor for All of the Following Reasons

question 94

Multiple Choice

Less-developed countries are poor for all of the following reasons except one. Which one?

• A) They do not produce many goods and services.
• B) Labor productivity is low.
• C) Investment funds tend to flow abroad
• D) Investment in human capital is very low.
• E) The labor force is too small.

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Definitions:

Delta Airlines

A major American airline that operates extensive domestic and international flights, known for its wide network and service.

Margin

The difference between the selling price of a product or service and the cost of its production or acquisition, indicating the profit.

Economic Activity

Economic activity refers to the actions that involve the production, distribution, and consumption of goods and services within an economy.

Marginal Analysis

An examination of the benefits and costs of increasing or decreasing a unit of production or consumption.