A. a country is poor because it has lower productivity but high savings
B. as countries grow richer they save less
C. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
D. market size is large in LDCs
Related Mcqs:
- According to the supply side of the vicious circle theory of development a country is poor because ?
A. technology levels do not allow for self sufficiency
B. it was previously too poor to save and invest
C. underemployment is too widespread
D. resource allocation is poor - The Vicious circle theory states that ?
A. growing government assistance create addiction to welfare programs
B. low income levels create pressure for money creation
C. low income levels create pressure for cheap imports
D. low per capita incomes creates low savings that keep incomes low - The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________?
A. elastic
B. perfectly elastic
C. unitarily elastic
D. inelastic. - The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ?
A. elastic
B. perfectly elastic
C. unitarily elastic
D. inelastic. - Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?
A. depreciation generally improves the trade balance
B. depreciation generally hurts the trade balance
C. no strong generalization is possible
D. depreciation has no effect on the trade balance - Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ?
A. but falls short of authorization
B. with immediate implementation
C. of the central bank
D. of implementation through foreign aid - Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?
A. has failed
B. works well in Utopia
C. is widely used in sub Saharan Africa
D. is the only way to eradicate poverty? - The Phillips curve indicates that there is a ?
A. negative relationship between the inflation rate and labor demand
B. positive relationship between labor supply and the inflation rate
C. positive relationship between the inflation rate and the employment the
D. negative relationship between the inflation rate and the unemployment rate - The AD schedule indicates that _______ inflation is associated with ________ output?
A. higher, lower
B. higher, higher
C. lower, lower
D. zero, zero - A comparison of Japan’s policies before 1945 with the policies in effect after 1945 indicates that______________?
A. reduction in spending on military goods leads to economic depression
B. dependence on foreign trade usually leads to a weakened national economy
C. territorial aggression is not necessary to secure national economic goals
D. democratic institution hinder economic growth
