The Rapid Growth Rates of Less Developed Countries (LDCs) After

question 75

Multiple Choice

The rapid growth rates of less developed countries (LDCs) after adopting institutions and policies more favorable to economic freedom and voluntary exchange is not surprising when one considers that

• A) LDCs can emulate and borrow successful practices and technologies from other, more developed nations.
• B) foreign aid payments to a less developed country are nearly always expanded rapidly when the country begins to increase its income level.
• C) the governments of LDCs play a larger role in economic planning, when economic freedom rises.
• D) economic theory indicates that improvements in institutions normally result from economic growth, rather than growth stemming from better institutions.

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Definitions:

Economic Trends

Patterns or movements in economic indicators, such as GDP growth, unemployment rates, or inflation over time, that help in forecasting future economic activity.

Strategic Planning

Strategic planning involves defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy, considering long-term growth and success.

Financial Statement Forecasting

The process of projecting future financial outcomes by analyzing historical data and current trends.

Sales Forecast

An estimate of the quantity of goods or services a company believes it will sell in a specific period.