When we compare the factors of production in wealthy and poor nations, we find:
A) poor nations have plenty of land and knowledge, but very little labor.
B) poor and wealthy nations (both) have an abundance of knowledge, it is the land that varies, with rich nations always having more.
C) wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas.
D) wealthy nations have land and labor, while poor nations have capital and entrepreneurship.

Question

Quizplus · Accepted Answer

Wealthy nations tend to have established knowledge-based economies and access to entrepreneurial opportunities, while poor nations often lack the infrastructure and resources to foster innovation and entrepreneurship. Land and labor are also important factors, but these are often more readily available in developing countries due to their larger rural populations and lower labor costs. Capital may be available in both wealthy and poor nations, but it is often more concentrated in the hands of a few in developing countries, limiting its impact on economic growth.

When We Compare the Factors of Production in Wealthy and Poor