Progressives argue that the national surplus in less developed countries is
A) used primarily for large infrastructure projects such as roads and hydroelectric dams.
B) absorbed by the local elite for entrepreneurial activities in the domestic economy.
C) absorbed by the local elite for nonproductive purposes such as conspicuous consumption.
D) used by foreign corporations to develop industries and provide employment for the local population.

Question

Quizplus · Accepted Answer

Progressives argue that the national surplus in less developed countries is often absorbed by the local elite for nonproductive purposes such as conspicuous consumption. This means that the surplus is not being used to benefit the broader population or to develop infrastructure or industries that could create jobs and improve living standards. Instead, it is being used for the personal luxury and consumption of the elite class, further widening income inequality and stifling economic growth.

Progressives Argue That the National Surplus in Less Developed Countries