PrepTest 73, Section 2, Question 23
A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.
A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.
A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.
A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.
The statements above, if true, most strongly support which one of the following claims?
Once a developing country has at least one business in a modern industry, further investment in that industry will not contribute to the country's economic growth.
In developing countries, there is greater competition within modern industries than within traditional industries.
A developing country can increase its prospects for economic growth by providing added incentive for investment in modern industries that have not yet been pursued there.
A developing country will not experience economic growth unless its businesspeople invest in modern industries.
Investments in a modern industry in a developing country carry little risk as long as the country has at least one other business in that industry.
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