Suppose a Developing Country Is Falling Further Behind the Developed

question 22

Multiple Choice

Suppose a developing country is falling further behind the developed countries that it neighbors. As an economic consultant you are called to look at its policies to recommend changes. If you saw all of the following on your visit, which of them could be an explanation for the slow growth in the economy?

• A)You see that new companies require few licenses to move their exports.
• B)You see that the central bank does not pay attention to what the elected officials want.
• C)You see that the roads, bridges, and ports are in great shape thanks to the work of the World Bank.
• D)You see that companies have to get official approval to remove their profits back to their home country.

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