ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP-the productivity of labor and capital resources. Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty.

Detailed explanation-2: -Solution: People in poor countries are dependent on the rich countries for food, clothing, education etc. Poor people in developing countries depend on rich people and rich countries for food supplies, clothing, education, etc. Prosperous countries often serve as helpers to developing countries.

Detailed explanation-3: -First, the amount of capital the firms employ; second, the importance of education and, third, the differences in the underlying efficiency with which the firms operate.

Detailed explanation-4: -Some countries are poor than other countries because of several factors such as political instability, lack of capital resources, and lack of quality labor, to mention a few.