Which of the Following Provides the Best Explanation of Why

question 1

Multiple Choice

Which of the following provides the best explanation of why low-income countries generally remain poor?

• A) Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
• B) They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
• C) They are poorly endowed with natural resources, which are essential for long-term rapid growth.
• D) When the average income level is low, workers have little incentive to earn higher incomes.

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Definitions:

Chapter 7

A provision under the U.S. Bankruptcy Code involving the liquidation of a debtor's assets to pay off creditors.

Preference Provision

A clause in a contract or agreement that gives a party a special right or privilege, often related to financial matters like dividends or bankruptcy claims.

Article 9

Refers to a portion of the Uniform Commercial Code (UCC) that governs secured transactions in personal property.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.