Investment diversion is considered an obstacle to economic growth because:
A)it would be better to increase the mortality rate of the country, and thus have a higher per capita real GDP.
B)investment in health care is highly appreciated by the international community.
C)capital infrastructure automatically eliminates population problems.
D)the investments in health care affect only the poorest, the least productive inhabitants of a country.
E)with no investment in infrastructure, there is no way for a country to build its industries.

Question

Quizplus · Accepted Answer

Investment diversion refers to a situation where investment funds are diverted from productive sectors such as infrastructure development to non-productive sectors. This is considered an obstacle to economic growth because without investment in infrastructure, a country cannot build its industries, which are necessary for sustained economic growth. Therefore, option E is the best choice. The other options are unrelated to investment diversion and do not provide a satisfactory explanation.

Investment Diversion Is Considered an Obstacle to Economic Growth Because