Economic growth is difficult for poor countries because
A)governments must fund capital production and research out of tax revenues.
B)resources must be taken away from consumer goods to pay for technology.
C)resources must be taken away from consumer goods to pay for capital goods.
D)those wealthy enough to invest in domestic industries may choose to invest abroad instead.
E)All of the choices are true.

Question

Quizplus · Accepted Answer

All of the choices (A, B, C, D) accurately describe challenges that can make economic growth difficult for poor countries. Governments in these countries often have to allocate funds from limited tax revenues for capital production and research (A), resources may need to be diverted from consumer goods to technology or capital goods (B and C), and potential domestic investors might opt to invest in foreign markets if they perceive better returns or lower risks (D).

Economic Growth Is Difficult for Poor Countries Because