AnswersEconomics 26-27Economic Development

Economic Development Answers

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3

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4

Read about the economy in Country A.Based on what you now know, what are at least three factors that demonstrate that Country A has a developing economy?

Answer:

Based on the characteristics of a developing economy, three factors that demonstrate Country A is developing include its low GDP per capita, the fact that a majority of the population works in agriculture (primary sector), and its low literacy rate. Additionally, a high birth rate or high infant mortality rate would also indicate a developing status.

5

Which of these factors did you include? Check all that apply.

A
a low GDP
B
an economy based on agriculture
C
an economy based on a few industries
D
a low standard of living
E
a lack of infrastructure
F
low labor costs
7

Which of these factors is the strongest sign that Country B has a developed economy?

A
Multinational corporations operate within its borders.
B
It is home to many high-tech companies.
C
It has laws favorable to entrepreneurship
D
It has a high gross domestic product.
9

Which factor places this nation in the transitioning category?

A
Multinational corporations operate within its borders.
B
It is shifting from a planned to a free-market economy.
C
It has recently increased trade with Western Europe.
D
It has a rising GDP.

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Economic Development Answers — Economics 26-27