Why Are Poor Countries Poor

question 182

Multiple Choice

Why are poor countries poor?

• A) because they have more human capital
• B) because they have more physical capital
• C) because they experience high labor productivity
• D) because they experience low labor productivity
• E) because they experience bad weather

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Definitions:

Ordinary Perpetuity

A type of annuity that pays a fixed amount to an investor at regular intervals indefinitely.

Compounded Annually

An interest calculation method where interest is added to the principal once a year, affecting the calculation of future interest.

Compounded Monthly

An interest calculation method where interest is added to the principal balance monthly, causing the total amount of interest to grow at an increasing rate.

Compounded Annually

The method of calculating interest where the total interest is added to the principal once per year, resulting in interest earning interest annually.