Author Question: The government's role in a developing country is important during the country's development process ... (Read 114 times)

karateprodigy · **on:** Apr 19, 2019

Question 1

Building roads, power generators, and irrigation systems are projects that are referred to as

◦ social overhead capital.
◦ human capital.
◦ physical capital.
◦ financial capital.

Question 2

The government's role in a developing country is important during the country's development process for all of the following reasons
except

◦ building social overhead capital cannot be taken on by the private sector.
◦ building infrastructure is a huge project that only the government can undertake.
◦ many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector.
◦ the government is the only institution with a vested interest in a country's development.

coyin · **Reply #1 on:** Apr 19, 2019

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