What Are the Three Criteria for a Least Developed Country

question 20

Multiple Choice

What are the three criteria for a least developed country (LDC) ?

• A)Low wealth, civil war, and poor infrastructure
• B)Low income, endemic corruption, and economic vulnerability
• C)Low income, weak human resources, and economic vulnerability
• D)Low wealth, civil war, and lack of natural resources
• E)Low income, weak human resources, and extensive crime

Identify and explain the main components and benefits of the market system, including the concept of the invisible hand.

Comprehend the coordination and incentive problems in centrally planned economies and how they impact economic efficiency.

Identify the issues related to risk management in both command and market economies.

Understand the implications of private property rights on resource allocation and productive efficiency.

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Definitions:

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital where each category of capital is proportionally weighted, including equity, debt, and other forms of financing.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding the cost of goods sold.

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding short-term debt. It is indicative of a company's operational liquidity.

Balance Sheet

A report that provides an overview of a business's financial position, including what it owns (assets), owes (liabilities), and the value that remains for the shareholders (equity) at a particular moment.