An important reason why economies at an early stage of development tend to operate inefficiently is
A) they tend to be dominated by the agricultural sector, where productivity is usually low.
B) they tend to have authoritarian governments that stifle innovation.
C) they tend to be plagued by superstitious beliefs that stifle innovation.
D) the high transactions costs associated with barter.

Question

Quizplus · Accepted Answer

Economies at an early stage of development tend to rely on barter transactions, which can be time-consuming and costly due to the lack of a standardized medium of exchange. These high transactions costs contribute to market inefficiencies, hindering productivity and economic growth.

An Important Reason Why Economies at an Early Stage of Development