Some Low-Income Countries Generally Remain Poor Because

question 54

Multiple Choice

Some low-income countries generally remain poor because

• A) their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
• B) they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
• C) they are poorly endowed with natural resources, which are essential for long-term growth.
• D) when the average income level is low, workers have little incentive to earn higher incomes.

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Definitions:

Selling Division

A segment or branch of a company responsible for marketing and selling its products or services.

Full Cost

The total cost of production that includes both direct costs, like raw materials and labor, and indirect costs, like overhead.

Margin And Turnover

Financial metrics where margin refers to the difference between sales and the cost of goods sold, and turnover involves the rate at which inventory is sold or replaced.

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.