In 1950,Brazil's Economy Was Roughly the Same Size as Nicaragua's

question 108

Multiple Choice

In 1950,Brazil's economy was roughly the same size as Nicaragua's.Today,Brazil's economy is almost five times as large as Nicaragua's.Which of the following best explains this difference?

• A) Nicaragua was too reliant on foreign aid, whereas Brazil was far more economically independent.
• B) Brazil greatly limited international trade, whereas Nicaragua opened its borders to imports and exports.
• C) Brazil supported institutions like property rights, which tend to foster growth, whereas Nicaragua did not.
• D) Brazil's economy was largely agricultural, whereas Nicaragua's was industrial.
• E) Nicaragua had excessively high tax rates, but Brazil kept its taxes low and competitive.

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Definitions:

Lava Flows

Lava flows are streams of molten rock that pour out of an erupting volcano, cooling and solidifying to form new rock formations.

Felsic Lava

Lava that is rich in silica and light in color, often associated with explosive volcanic eruptions.

Scoria Cones

Volcanic features formed from the accumulation of small, porous volcanic rocks (scoria) around a vent, resulting in a cone-shaped hill.

Bulldozing

A process involving the forceful pushing, scouring, or removal of earth, materials, or obstacles using heavy machinery or natural forces, such as glaciers.