31269
AssignmentMultiple Choice

Economic Development

Question 31269 • * HSA 26-27 Economics

Which of these factors is the strongest sign that Country B has a developed economy?

Answer
A
Multinational corporations operate within its borders.
B
It is home to many high-tech companies.
C
It has laws favorable to entrepreneurship
D
It has a high gross domestic product.

Explanation

A high gross domestic product (GDP) indicates that a country produces a large total value of goods and services, which is a broad sign of a developed economy. Multinational corporations, high-tech companies, and entrepreneurship-friendly laws can also be found in developing economies. GDP per person would be a more precise measure of average prosperity, but among these choices, high GDP is the strongest sign.

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