The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are
A) use existing resources more eﬃciently and expand the available resources.
B) expand the government sector and preserve all available resources.
C) enhance regulation and taxation, and redistribute income to reduce income disparity.
D) expand the money supply and eliminate budget deﬁcits.

Question

Quizplus · Accepted Answer

Using existing resources more efficiently, such as improving infrastructure and technology, can lead to increased productivity, while expanding available resources through investments in education and natural resource development can also spur economic growth. B, C, and D may have negative effects on economic development, such as crowding out private investment or discouraging innovation.

The Two Paths to Economic Development, Which Are the Same