Question:

Which of the following is not conducive to economic development?

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a) An increase in labour productivity.

b) Captial formation

c) Over population

d) Appropriate technology

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3 ANSWERS


  1. According to free market economic theory, the sole determinant of increased wage rates and standards of living is the per capita, capital investment per worker.

    All of the above are "conducive" to economic development (whatever that means), but only capital investment will translate to benefit wage rates and standards of living.


  2. C.,....it says over population, this is not to be confused with a simple population increase.  The "over" part of the answer explicitly states that it is bad-->or is it implicitly?.  And bad is not conducive.

  3. c) over population.

    This phrase suggests that there are not enough resources to meet the needs of the population.  This situation is not conductive to economic development.

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