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If a Nation Starts Out with Very Little Capital

Question 73

Multiple Choice

If a nation starts out with very little capital


A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods.
B) it can quite easily divert some resources from producing consumer goods to producing capital goods.
C) if it is lucky enough to possess a valuable commodity that the industrial world wants such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize.
D) None of the choices are true.

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