To find: Factor that prevents long-run
Answer to Problem 4MCQ
Option E is correct.
Explanation of Solution
Option A
Political instability in Africa had caused lack of investment, poorer economic growth in country A. As people did not trust the government, this has resulted in lack of growth in the economy.
Option B
Lack of property rights
Property rights are defined when there is a proper legal system. Due to lack of effective legal system, people could not exercise property rights, thereby leading to lack of economic growth.
Option C
Unfavorable geographic conditions in country A, particularly in sub Saharan Africa has led to low economic growth. Extreme high temperature and lack of cultivation has led to poor economic growth.
Option D
Poor health
Lack of medicines, health facilities, unfavorable leadership and management has made poor growth in Africa.
Option E is correct.
Economic growth is the increase in level of aggregate production of an economy which is manifested in
Chapter 38 Solutions
Krugman's Economics For The Ap® Course
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