Which Theoretical Approach Claims That Rich Nations of the World

question 34

Multiple Choice

Which theoretical approach claims that rich nations of the world are "overdeveloped" while poor nations are "underdeveloped"?

• A)modernization theory
• B)dependency theory
• C)both modernization theory and dependency theory
• D)neither modernization theory nor dependency theory

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a fixed period.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business or investment.

Call Premium

The additional amount above the exercise price that one must pay to purchase a call option.

Put Premium

The price that a put option buyer pays to acquire the right to sell a specified quantity of an asset at a predetermined price before the option expires.