Suppose a Developing Country Is Falling Further Behind the Developed

question 57

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 terrible shape.
• D)You see that literacy rates rival those of its developed neighbors

---

Definitions:

Initial Feasible Solution

The first solution that meets all the minimum criteria of a problem, used as a starting point for further optimization in problem-solving or planning.

Stepping-Stone Method

A mathematical approach used in linear programming to find the optimal solution for transportation problems by moving sequentially from one feasible solution to another.

Transportation Problem

An optimization challenge focused on determining the most efficient allocation of resources for transporting goods from suppliers to destinations.

Northwest-Corner Rule

A method used in transportation and logistics to find an initial feasible solution for transporting goods from suppliers to consumers, starting at the northwest corner of a matrix.