One of the Hindrances to Economic Progress in Poor Countries

question 3

Multiple Choice

One of the hindrances to economic progress in poor countries may be:

• A) the lack of secure property rights
• B) the presence of secure property rights
• C) the lack of tort law
• D) the presence of an overly strict tort law
• E) the inability to establish trusts

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Definitions:

Income Mobility

Movement of individuals and families either up or down income-distribution rankings when comparisons are made at two different points in time. When substantial income mobility is present, a person’s current position in the rankings will not be a very good indicator of what his or her position will be a few years in the future.

Income Inequality

The uneven distribution of income within a population, leading to disparities between the wealth of different groups.

Annual Data

Information or statistics recorded over a one-year period.

Positive Economics

An aspect of economics that focuses on objective analysis and descriptions of how the economy functions, without prescribing policies.