In a Developing Economy, Scarcity of Capital May Have More

question 117

True/False

In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.

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Definitions:

Consistent Trends

Patterns or changes in data that continue over a period of time in a similar manner.

Standard Direct Labour Hours

The estimated amount of labor hours required to produce a certain amount of output under normal conditions.

Actual Production

The real quantity of goods or services produced within a specific period, as opposed to planned or theoretical outputs.

Normal Production

The average production capacity or level of output that a manufacturing process or plant is designed to achieve under normal conditions.