According to Modernization Theory, What Is One Reason That Countries

question 58

Multiple Choice

According to modernization theory, what is one reason that countries are poor?

• A) They stick with traditional and inefficient institutions.
• B) They just do not work hard enough to succeed.
• C) Their embrace of capitalism holds them back.
• D) They refuse to admit that the U.S. knows what is best.

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Definitions:

Discounted Payback Period

A capital budgeting method that calculates the time required to break even on an investment, considering the time value of money.

Payback Period

The length of time required for an investment to recover its initial outlay in terms of profits or savings, used as a measure of the investment's risk.

Required Rate

The minimum return an investor expects to achieve from an investment, taking into account its risk level.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.