Why Would State-Centered Theorists Be Critical of Market-Oriented Theorists

question 63

Multiple Choice

Why would state-centered theorists be critical of market-oriented theorists?

• A) State-centered theorists see state intervention as the major cause of underdevelopment and global inequality.
• B) State-centered theorists view the market as the natural and best method for economic development.
• C) State-centered theorists think that historical evidence shows that men tend to be better suited to be economic players than women tend to.
• D) State-centered theorists think that state intervention into the economy can play a key role in development.

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Definitions:

Profitability Index

A calculation that compares the present value of all future cash flows of an investment to its initial cost, used to assess its profitability.

Net Present Value (NPV)

The calculation used to find today's value of a future stream of payments and receipts, factoring in the time value of money.

Option to Abandon

A strategic decision-making right allowing a company to cease investment in a project if operational costs outweigh the benefits.

Forecasting Error

The difference between the actual value and the predicted value in forecasting, indicating the accuracy of the prediction.