NABTEB Economics 2024 Objective — Question 43
Question 43 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2024 Objective paper, with the correct answer and a full explanation.
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One indicator of the low level of capital formation in developing countries is
- A. A. low per capita incomeCorrect
- B. B. high rate of investment
- C. C. low importation of consumer goods
- D. D. high rate of household savings
Explanation
The per capita income is an indicator of the standard of living and economic development of a country. However, there is low per capita income in developing countries and this affects their capital formation or accumulation (vicious circle of poverty).
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