Capital flight is a problem facing DVCs that involves the:

A. Difficulty of sustaining skilled workers in the government sector of the DVC economies
B. Transfer of private savings from DVCs to IACs
C. Flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities
D. Movement of capital goods from IACs to DVCs to avoid taxes


B. Transfer of private savings from DVCs to IACs

Economics

You might also like to view...

Is collusion possible in monopolistic competition? Why or why not?

What will be an ideal response?

Economics

Given a positive externality, the marginal social benefits curve lies to the __________ of the demand curve, with the market output __________ the socially optimal output.

A. right; greater than B. right; less than C. left; greater than D. left; less than

Economics

If Happy Campers has a market share of 70 percent and Campers R Us has a market share of 5 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm and Campers R Us ________ be considered a dominant firm.

A) would; would B) would not; would C) would; would not D) would not; would not

Economics

When the demand curve shifts to the right and supply doesn't change:

A. equilibrium quantity will rise. B. quantity demanded will rise. C. supply will rise. D. equilibrium price will fall.

Economics