Concerning Economic Growth, Which of the Following Is True

question 12

Multiple Choice

Concerning economic growth, 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 institutional environment will tend to attract more investment in human and physical capital.

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Definitions:

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Initial Cost

The original cost of acquiring an asset, including purchase price and any expenses incurred to put the asset into use.

Cash Inflows

Money or equivalents received by a company during a specific period, which can come from operations, investments, or financing activities.

Payback Period

The duration it takes for an investment to return its initial cost to the investor, a measure of an investment's risk and liquidity.