What is most likely to encourage underground economies? Correct. Control economies are characterized by heavy government regulations, which limit development and motivate underground economies to emerge.
Q. Which factors that hinders development in South Africa?
The countries of the South have the reverse of what the North has as their case – poverty, low wages, forced labour, poor infrastructure, poor health facilities, serious shortage of housing, poor educational system, lack of social welfare schemes, undeveloped transport system, inadequate security apparatus, etc.
Table of Contents
- Q. Which factors that hinders development in South Africa?
- Q. What are the factors hindering development in South Sudan?
- Q. What factors are most important for economic growth?
- Q. Which of the following has led to the rapid increase in globalization?
- Q. Why underground economy is bad?
- Q. What are some examples of underground economy?
- Q. Why is GDP not an accurate indicator of development?
Q. What are the factors hindering development in South Sudan?
Political instability, poor governance, and corruption continue to hinder development in the world’s youngest country. South Sudan is mostly undeveloped; most villages in the country have no electricity or running water, and the country’s overall infrastructure is lacking, with only 10,000 kilometres of paved roads.
Q. What factors are most important for economic growth?
There are three main factors that drive economic growth:
- Accumulation of capital stock.
- Increases in labor inputs, such as workers or hours worked.
- Technological advancement.
Q. Which of the following has led to the rapid increase in globalization?
Answer Expert Verified. The answer is international trade. Globalization has brought a lot of benefits to many countries and one is the increase in international trade. It has led to increased flows of inward investment between countries.
Q. Why underground economy is bad?
Because underground economic transactions go unreported, they distort the accuracy of a nation’s gross domestic product, which consequently may adversely affect a government’s monetary policies. The underground economy also causes billions of dollars in lost taxes.
Q. What are some examples of underground economy?
Alternative names for the underground economy include the shadow economy, the black market, and the informal economy. Marketing in illegal drugs, human trafficking, endangered species, human organs, antiquities, and stolen goods are examples of activity in the underground economy.
Q. Why is GDP not an accurate indicator of development?
An increasing GDP is often seen as a measure of welfare and economic success. However, it fails to account for the multi-dimensional nature of development or the inherent short-comings of capitalism, which tends to concentrate income and, thus, power.
