Question

which of the following can explain why some countries have not experienced relatively high growth rates in real gdp per capita despite relatively low initial levels of real gdp per capita?
countries that are relatively poor are more likely to experience wars and revolutions.
all of the above
many of these developing countries do not have a functioning court system that can enforce laws.
countries that are relatively poor are likely to have a lower quality of health care.

question 9
1 pts
enforcing property rights in an economy will
raise the level of investment.
cause the market system to work less efficiently.
decrease the level of foreign portfolio investment.
encourage corruption and expand the underground economy.

Explanation:

• For the first question:
• Wars and revolutions (as in the first option) disrupt economic activities like production, investment, and trade.
• A non - functioning court system (third option) fails to protect property rights and enforce contracts, discouraging investment.
• Poor health care (fourth option) leads to a less productive workforce as workers may be sick more often. So all these factors can prevent a country from achieving high growth rates despite low initial GDP per capita.
• For the second question:
• Enforcing property rights gives investors confidence that their investments will be protected. This encourages both domestic and foreign investment. A well - functioning court system to enforce property rights makes the market system work more efficiently (contradicts the second option). It also increases rather than decreases foreign portfolio investment (contradicts the third option) and discourages corruption and the underground economy (contradicts the fourth option).

Answer:

• First question: all of the above
• Second question: raise the level of investment