Which of the Following Factors Has Been Suggested as an Explanation

question 120

Multiple Choice

Which of the following factors has been suggested as an explanation for the lack of economic growth in many poor nations?

• A) insufficient capital formation
• B) the supply of human resources is too high.
• C) inadequate level of resources
• D) a lack of dependence on the already developed nations

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Definitions:

Economic Rent

The payment to an owner or factor of production in excess of the costs needed to bring that factor into production, essentially a surplus amount.

High Wages

Payment levels to employees that are above the industry average, often due to high skill levels, efficiency, or labor market conditions.

Real Wages

Are wages that have been adjusted for inflation, representing the purchasing power of nominal wages.

Real Wages

Real wages refer to wage earnings adjusted for inflation, representing the purchasing power of a person's earnings in terms of the goods and services they can buy.