A Requirement for Development Is

question 48

Multiple Choice

A requirement for development is

• A)an unreliable system of financial institutions
• B)a lack of saving by households and firms
• C)low confidence in domestic currency
• D)low and predictable inflation that encourages saving
• E)None of the answers is correct

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Definitions:

Welfare Dependency

A condition in which individuals or households rely heavily on government assistance for long periods instead of achieving financial independence through employment.

Able-Bodied Person

An individual who is physically capable of working or performing daily tasks without assistance.

Negative Income Tax

Cash payments by the government to the poor—an income tax in reverse. The cash payments decrease as income levels increase.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.