Which Two of the Following Are Factors Affecting a Country's

question 4

Multiple Choice

Which two of the following are factors affecting a country's capacity to efficiently produce goods and services in the long term?

• A) Its willingness to run budget deficits
• B) The flexibility of its monetary policy
• C) Its investment in human capital
• D) Its level of institutional sophistication and institutional reliability

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Definitions:

Capital Goods

Long-term assets acquired by businesses to create goods and services; these include machinery, tools, and buildings.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Skilled Workers

Individuals who have specialized training or expertise in a particular job or industry, often requiring formal education or apprenticeship.

Foreign Aid

Financial or in-kind assistance given by one country to another, often for developmental projects, humanitarian aid, or economic stabilization.