What Is "Capital Flight" as It Relates to the Underdeveloped

question 34

Multiple Choice

What is "capital flight" as it relates to the underdeveloped world?

• A) Imperfect flows of information hinder investment opportunities in the underdeveloped world.
• B) Banks in the underdeveloped world are inadequately connected to the developed world.
• C) Wealthy individuals and firms invest and deposit monies in developed countries.
• D) Educated people migrate to developed countries.
• E) Investments are made in airports to improve transportation infrastructure

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Definitions:

Resource Employment

The utilization of economic resources, including labor, capital, and materials, in the production of goods and services.

Consumption And Investment

Expenditures by households on goods and services and allocations of resources for future earnings.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between multiple options.

Voluntary Exchange

is a transaction where parties trade goods or services by mutual agreement, each benefiting from the exchange.