What Is Needed to Aid Capital Formation in Developing Countries

question 277

Multiple Choice

What is needed to aid capital formation in developing countries?

• A)more capital flight
• B)more oil resources
• C)more entrepreneurship
• D)higher price supports for products

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Definitions:

Taxes

Essential fees levied by authorities on personal and corporate income, or added onto the costs of selected merchandise, services, and operations.

Tax Revenue

Income earned by the government from taxing individuals and businesses.

Tax

An obligatory fiscal charge or another form of assessment applied to a taxpayer by a government body to finance government operations and diverse public expenses.

Deadweight Loss

Deadweight loss is an economic inefficiency that arises when a market outcome is not optimal, resulting in a loss of total surplus due to factors like taxes or monopolies.