Explain how each of the following limits the economic growth of developing nations:
(a) Insufficient capital formation
(b) A shortage of human resources
(c) A lack of social overhead capital
(a) If there is insufficient capital formation, then capital stock does not grow and output in the future will be reduced. A lack of capital also reduces the productivity of labor.
(b) A shortage of human resources may be a barrier to growth because this reduces productivity. Also, foreign companies will not invest in countries that do not have a trained labor force.
(c) A lack of social overhead capital makes countries less able to attract private investment. A lack of social overhead capital also increases the difficulty of transporting food throughout the country, which worsens the food shortage.
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A) money controls the media. B) private concerns matter more to them than public affairs. C) they are apathetic about government. D) they know their vote doesn't really matter. E) the country is a republic, not a democracy.
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Indicate whether the statement is true or false