Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are
A) capital and skilled labor.
B) capital and unskilled labor.
C) fertile land and unskilled labor.
D) fertile land and skilled labor.
E) water and capital.

Question

Quizplus · Accepted Answer

The factors of production essential to modern industry are capital (money, investments, technology) and skilled labor (workers with specialized training and education). Developing countries typically lack both of these factors, which contributes to their economic struggles. While resources like land and water are important for certain industries, they are not considered essential to modern industry.

Compared with Industrialized Economies, Most Developing Countries Are Poor in the Factors