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If a Nation Starts Out with Very Little Capital

Question 197

Multiple Choice

If a nation starts out with very little capital


A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods.
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful.
C) if it is lucky enough to possess a valuable commodity that the industrial world wants,such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize.
D) All of the choices are true.

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