In His Economics Class,Judson Learned That Countries That Are Rich

question 55

Multiple Choice

In his economics class,Judson learned that countries that are rich in resources have slower-growing economies and greater inequality than countries that are resource poor.What term describes this phenomenon?

• A) political dysfunction
• B) resource curse
• C) environmental injustice
• D) resource contingency

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Definitions:

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.

Hedge Funds

Investment funds that use advanced strategies, including leverage, derivatives, and short selling, aiming for high returns.

Mutual Funds

Investment funds that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Front-end Load

A fee charged to an investor at the time of their initial investment into a mutual fund, typically used for the fund's sales commission.