One of the most significant barriers to economic growth in the world\'s poorest

ID: 1210603 • Letter: O

Question

One of the most significant barriers to economic growth in the world's poorest nations is

a. dead capital

b. environmental issues.

c. political freedom

d. u.s. government interferience

2- all of the following are examples of institutions that promote real economic growth except

a. complex rules associated with business licensing used to promote careful business growth

b. an efficient judicial system used to enforce contracts

c. strong law enforement used to protect business interests

d. patent laws that protect innovation

3-if there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as

a. international financial crisis

b.adverse selection crisis

c. moral hazard

d. portfolio investment crisis

4- portfolio investment is defined as

a. the aquisition of more then 40 percent of the shars of ownership in a company in another country

b. the purchase of less then 40 percent of the shars of ownership in a company in another country

c.the diversification of purchasing share in many companies in one country so that risk is kept to a minimum

d. none of the above

(1) (a)

Lack of capital/dead capital is barrier to growth for poorer nations.

(2) (a)

Complex rules slow down the growth rate by creating bureaucratic inefficiency.

(3) (d)

Rapid withdrawal of funds is a portfolio investment crisis (assuming the investment withdrawn are short term portfolio investments).

(4) (b)

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