Chapter t 1 Nations with greater oornerme freedom are: a, restrictions on itemat
ID: 1120658 • Letter: C
Question
Chapter t 1 Nations with greater oornerme freedom are: a, restrictions on itemationel b, excessive infiation 6, a large govemmen d, All of the above are a poor provision of publie services b, excessively strong private property ighs c, excessively competitive markels d. All of the above 24, LDCs often experience excessive infiation because a. the government pursues rapid money supply gros b. the government does not impose enough price contecls c, the govenment allows too many unrestricted imports d. All of the above 25. According to "The Power of Productivity: a. a poorly educated labor force and a low level of saving are huge baniers increasing labor productivity b. a country with high productivity will attract financing from foreign investo c. Both of the abovee d. Neither of the aboveExplanation / Answer
21) Invisible
22) The counterproductive policy adopted by the LDC government is
(D) All of the above
High inflation in LDC is because of bottlenecks in supply like lack of infrastructure which is a result of government inaction. Their governments are generally large and lack the capable human resource resulting in a lot of departments and fragmentations and overlapping of functions among them. Trade is restricted and the countries try to produce all on their own instead of exporting the goods where they have a comparative advantage and import those which they lack.
23) (a) poor provision of public service. Self-explanatory. Those countries don't have proper resource allocation and a very poor public service.
24) (a) THe government in these countries often pursue easy money policy i.e. rapid money supply growth. This erodes the value of money and things become costlier instead they should work on increasing production.
25) (c) The power of productivity can be defined as producing more using fewer resources. This is only possible when the human resources are producing more and is capable and educated. High saving rates provide the countries with more capital and help in increasing more productivity.
Any nation will like to invest in countries which can produce more using fewer resources, increasing the profit.
PS: Put the first question in the comment section I will answer it. The image above in too blurry to be read.