An Important Reason Why Economies at an Early Stage of Development

question 89

Multiple Choice

An important reason why economies at an early stage of development tend to operate inefficiently is

• A) they tend to be dominated by the agricultural sector, where productivity is usually low.
• B) they tend to have authoritarian governments that stifle innovation.
• C) they tend to be plagued by superstitious beliefs that stifle innovation.
• D) the high transactions costs associated with barter.

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Definitions:

Spinous Process

The spinous process is a bony projection off the posterior (back) of each vertebra, which muscles and ligaments attach to.

Inferior Projection

A downward anatomical direction or extension from a main structure.

Vertebrae

are the series of small bones forming the backbone, providing support and protecting the spinal cord.

Acromion Process

A bony prominence on the scapula (shoulder blade), forming the highest point of the shoulder and connecting with the collarbone.