To raise economic development, developing countries should
A) focus on their comparative advantage.
B) focus on producing service goods.
C) produce goods that are capital intensive and not labor intensive.
D) not focus on economic growth.

Question

Quizplus · Accepted Answer

Developing countries should focus on producing goods and services that they can produce at a lower opportunity cost than other countries, which is known as their comparative advantage. By focusing on their comparative advantage, developing countries can increase their production and exports, creating jobs, and increasing economic growth. This can lead to increased incomes, better standards of living, and overall economic development. Focusing on service goods or capital-intensive goods may not necessarily be their comparative advantage and may not lead to the same level of economic development. Not focusing on economic growth would also hinder economic development.

To Raise Economic Development, Developing Countries Should