What is needed to aid capital formation in developing countries?
A) more capital ﬂight
B) more oil resources
C) more entrepreneurship
D) higher price supports for products

Question

Quizplus · Accepted Answer

Developing countries need more entrepreneurship to aid capital formation. Entrepreneurship helps to stimulate innovation and creates new businesses, which in turn creates employment and boosts economic growth. It also encourages investment in new ideas and technology, leading to increased production and efficiency. More capital flight, more oil resources, and higher price supports for products are not necessarily good solutions for aiding capital formation in developing countries as they do not address the underlying issues that prevent capital formation.

What Is Needed to Aid Capital Formation in Developing Countries