Which of the Following Provides the Best Explanation of Why

question 97

Multiple Choice

Which of the following provides the best explanation of why low-income countries generally remain poor?

• 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 rapid growth.
• D) When the average income level is low, workers have little incentive to earn higher incomes.

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Definitions:

Adrenocorticotropic Hormone

A hormone produced in the anterior pituitary gland that stimulates the production of cortisol by the adrenal cortex.

Growth Hormone

Anterior pituitary hormone that regulates growth and metabolism.

Acromegaly

A hormonal disorder that results from the excessive production of growth hormone, leading to enlargement of body parts.

Growth Hormone

A peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.