Which of the Following Is a Reason for the Very

question 10

Multiple Choice

Which of the following is a reason for the very slow growth in per capita income of the poorest economies?

• A) They have focused on developing new technologies rather than adopting the technologies.
• B) Birth rates in these economies are double than those in richer countries.
• C) They have focused on the production of export-oriented goods.
• D) The manufacturing sector contributes the most to their national income.
• E) They have invested heavily in human capital.

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Definitions:

Price Elasticity of Demand

The rate at which demand for a product responds to its price being altered.

Short Run

The period in economic theory during which at least one factor of production is considered fixed.

Long Run

A period in which all factors of production can be varied, and no inputs are fixed.

Demand Inelasticity

A situation where the demand for a product does not change significantly with a change in its price.