Which of the following is a major reason for some of the world's poorest countries to have suffered from economic stagnation?
A) Commitment to democratic government
B) Rapidly expanding population
C) Implementation of the economic policies that are based on free market economics
D) Tough labor regulations
E) Low barriers to foreign direct investment

Question

Quizplus · Accepted Answer

Rapidly expanding population can put a strain on resources and infrastructure, making it difficult for an economy to grow and develop. This is particularly true for poor countries that may have limited resources to begin with. The other choices do not necessarily contribute to economic stagnation in poor countries. Commitment to democratic government, for example, may actually promote economic growth by ensuring stability and rule of law. Implementation of free market economics and low barriers to foreign investment can also stimulate economic growth, although they may not be sufficient on their own. Tough labor regulations may protect worker rights but could also discourage job creation and investment.

Which of the Following Is a Major Reason for Some