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Can economies grow of less developed countries by developing its secondary sector?
Economies grow of less developed countries by developing its secondary sector because manufacturing:
• Commonly has a higher value added than agricultural products and it may bring employ, exports and growth and higher incomes.
• Has higher income elasticity of demand therefore as world income grows demand for manufacturing rises by a big proportion. The opposed is true for agricultural products.
• Fewer prices is volatile as this is not as subject to unforeseen conditions (frost, disease) like agriculture.
Is an unequal distribution of income and wealth a problem? Explain in short. Yes: because specified no government intervention, which on very low incomes cannot afford necessar
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explain how inflation could reduce the efficiency with which prices allocate resources.
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