Which of the Following Statements Is Not Correct

question 113

Multiple Choice

Which of the following statements is not correct?

• A)The catch-up effect is based on the assumption of diminishing returns to capital.
• B)Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies.
• C)Malthus argued that charity and government aid was an effective way to reduce poverty.
• D)Peace and justice are keys to growth.

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Definitions:

Public Trading Companies

Corporations whose shares are listed and traded on public stock exchanges, making their ownership publicly accessible.

Adequate Capital

Sufficient funds required by a business to finance its operations and meet its obligations without facing financial distress.

Bank Run

A situation where a large number of a bank's customers try to withdraw their deposits simultaneously because they believe the bank might fail.

Canadian Deposit Insurance Corporation (CDIC)

A federal crown corporation in Canada that provides deposit insurance to protect the deposits made by consumers in member financial institutions in case of their failure.