Regarding economic growth and income levels, which of the following is true?
A) Poor countries are unable to ignite the growth process unless they receive financial aid from richer countries.
B) Countries that fail to adopt institutions and policies supportive of trade, entrepreneurial discovery, and private investment will remain poor in the foreseeable future.
C) Countries that lack an abundance of natural resources have been unable to grow and achieve high income levels.
D) Countries with a large population relative to their land area are destined to remain poor.

Question

Quizplus · Accepted Answer

Countries that fail to adopt institutions and policies supportive of trade, entrepreneurial discovery, and private investment will remain poor in the foreseeable future. A lack of financial aid or natural resources, as well as a large population, are not determinative factors in a country's ability to achieve economic growth and high income levels. Rather, it is the adoption of policies and institutions that foster a favorable business environment that allows for growth and development.

Regarding Economic Growth and Income Levels, Which of the Following