Describe in general terms four or five characteristics of less-developed countries
Less-developed countries have high populations and high birth and death rates, have low standards of
living as measured by per capita GDP, and rely on technology and other needed inputs from the developed
countries. More than half of their populations are engaged in agriculture where productivity is low. These
countries make poor use of their labor and underemployment abounds. They have high illiteracy rates and a
low percentage of their populations in school at any level. Life expectancy is low; people suffer from
malnutrition and disease and have few health-care opportunities.
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Refer to Table 8-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals
A) $2,200. B) $2,100. C) $1,600. D) $1,400.
One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion
What will be an ideal response?
Implicit costs
A. Include the value of all resources used to produce a good. B. Are the sum of actual monetary payments made for resources used to produce a good. C. Include only payments to labor. D. Are the value of resources used, for which no monetary payment is made.
Trade is only beneficial if a nation has an absolute advantage in producing all products.
Answer the following statement true (T) or false (F)