Suppose That the Average Income of a Kenyan Is Higher

question 16

Multiple Choice

Suppose that the average income of a Kenyan is higher than the average income of a South African.You might conclude that

• A) Kenyan firms are faced with stricter government regulations than South African firms.
• B) total income is divided among fewer workers in Kenya since it has a smaller labor force than South Africa.
• C) Kenya's climate allows for longer growing seasons and therefore Kenya can produce large quantities of grain and other crops.
• D) productivity in Kenya is higher than in South Africa.

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Definitions:

Liability for Losses

The obligation of an individual or entity to compensate for damages or financial losses incurred by another.

Limited Partner

An investor in a partnership whose liability is limited to the amount of the investment and who does not participate in day-to-day management.

Management Rights

The powers and authority given to managers or executives to make decisions and direct operations within an organization.

Limited Liability

A legal principle that limits an investor's loss in a business venture to the amount of capital they have invested, protecting personal assets from business debts.