Which of the Following Will Most Likely Increase Geographic Distance

question 45

Multiple Choice

Which of the following will most likely increase geographic distance between two countries?

• A) lack of adequate transportation between the two countries
• B) differences in consumer incomes between the two countries
• C) lack of human resources available in the two countries
• D) different knowledge base in the two countries

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Definitions:

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another (the principal) but may not do so due to conflicting interests.

Adverse Selection Effect

A situation in which asymmetric information leads to the selection of undesired risks, often seen in insurance markets where customers know more about their health status than insurers.

Rent-Seeking Behavior

Rent-seeking behavior is when an individual or entity seeks to increase their own wealth without creating new wealth, often through manipulating the social or political environment.