Which of the Following Is a Reason Why a Country

question 177

Multiple Choice

Which of the following is a reason why a country barely at subsistence levels cannot achieve growth very easily?

• A) It cannot decrease capital goods in order to increase consumption goods.
• B) The lower income means that Say's law does not apply here.
• C) Too much savings exist and therefore it remains underutilized.
• D) It cannot decrease consumption goods in order to increase capital goods.
• E) It cannot decrease capital goods in order to also decrease consumption goods.

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Definitions:

Balance Sheet

An accounting document that outlines the assets, liabilities, and owners' equity of a company on a specific date.

Land

A fixed asset category representing the ownership of a physical parcel of the earth's surface which is used in operations and has an indefinite useful life.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Inventory

The total value of a company's raw materials, work-in-progress, and finished goods that are considered assets on a balance sheet.