Which One of the Following Statements Is True

question 76

Multiple Choice

Which one of the following statements is true?

• A) Countries with strong investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
• B) Countries with weak investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
• C) Countries with weak investment opportunities should invest more at home.
• D) Countries with weak investment opportunities should invest little abroad.
• E) Countries with weak investment opportunities should invest little abroad and channel their savings into more productive investment activity domestically.

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Definitions:

Market Economy

An economic system where supply and demand within a free market determine the production of goods and services, with minimal governmental intervention.

Productivity

Productivity is a measure of efficiency, typically quantified as the ratio of output produced to the inputs used in the production process.

Economic Pie

A metaphorical representation of the total wealth or economic output available in a society or economy.

Cumulative Share

The total percentage of a market or segment controlled by a company or entity, accumulated over time.