Which of the Following Is an Explanation for Why Some

question 90

Multiple Choice

Which of the following is an explanation for why some poor countries suffer from lower productivity growth?

• A)Too much saving has lead to the accumulation of capital in poor countries.
• B)The adoption of technology too quickly hurts the labor force in poor countries.
• C)Primary education is universal in poor countries.
• D)Poor countries have lower capital stocks.

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Definitions:

Net Investment

The total a company invests in new capital assets, minus the cost of depreciation.

Bondholders

Individuals or institutions that hold the debt securities issued by governments or corporations, entitled to receive interest payments and the principal on maturity.

Common Stockholders

Individuals or entities that own shares of common stock in a company, granting them certain rights like voting on corporate matters.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, owning assets, and being taxed.