A potential drawback to the big-push strategy in LDCs is that
a. supply bottlenecks may occur that would undermine the all-at-once development process
b. there is a problem in choosing which sectors to develop first
c. private firms will avoid making the planned investment
d. it calls for vast movements of resources, including labor, which may not be possible because people are disinclined to move
e. it depends primarily on foreign aid which has proved to be an unreliable source of investment funding
A
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If the marginal product of labor is 45 units of output and the marginal product of capital is 56 units of output while the wage rate is $20 per worker and the cost of capital is $28 per machine, are these two inputs being used in the least-cost
combination and what should be done if they are not?
The government uses the buying power of wages in reporting changes in "nominal wages" in the economy.
Answer the following statement true (T) or false (F)
Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)
A. is only useful if the budget deficit is rising at an annual rate of more than 4 percent. B. helps us understand the size of the deficit relative to the size of the economy. C. was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large. D. results in inflation-adjusted revenue and expenditure numbers.
Compared to the 1950-1973 period, output per worker ________ in the 1974-1995 period.
A. increased more rapidly B. decreased more slowly C. increased more slowly D. decreased more rapidly