Which of the following statement is not true about LDCs ?
Correct answer: C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
- A. Most LDCs have less than 1/10 the per capita GNP of the U.S
- B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S
- C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
- D. Most LDCs have a greater shortage of qualified teachers than the U.S does
Explanation
In labor-abundant LDCs, imposing Western minimum wages and labor standards is generally not considered sensible because it can reduce employment and obstruct the use of abundant low-cost labor. The other statements describe common LDC characteristics.
Last updated
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
1. The most widely traded currency in the foreign exchange market is the ?
85% of the world's population lives in developing countries and receives about _____ of the world's income?
A 44-nation survey regrading religions found that_________________?
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
A capital account surplus might be expected to cause a current account deficit because the associated ?