Which of the following statements is correct?
A) Saving is high in less-developed nations because the opportunities for consumption are limited.
B) For developing nations, the annual rate of population increase is about 5 percent.
C) Most of the labor forces of developing nations are engaged in light industrial production.
D) Investment is low in developing nations, making it diﬃcult to increase productivity and incomes.

Question

Quizplus · Accepted Answer

The statement "Investment is low in developing nations, making it difficult to increase productivity and incomes" is correct. Saving rates may be high in less-developed nations, but that does not necessarily lead to higher investment or productivity. The annual rate of population increase in developing nations is generally lower than 5 percent, and the labor force in developing nations is engaged in a variety of industries, not just light industrial production.

Which of the Following Statements Is Correct