Which of the following is a reason why the growth rates of low-income countries can be higher than those of high-income countries?
a. Lower-income countries can observe the experience of those countries that have grown more quickly and can learn from it.
b. Lower-income countries have a comparative advantage in the production of labor-intensive goods, which have higher terms of trade than
capital-intensive goods.
c. Lower-income countries have an abundant supply of rich natural resources.
d. Lower-income countries can produce goods more cheaply than high-income countries as the average wage rate in low-income countries is lower than that in high-income countries.
a
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Total factor productivity in railroads _____________ in the 20 years prior to the Civil War
a. decreased slightly b. remained largely unchanged c. increased by about 25 percent d. more than doubled
A leveraged buyout by Eaton's of Simpson's stock or assets
a. is financed by Eaton's using its own corporate retained earnings b. is primarily debt financed c. is financed by Eaton's stock offering d. is financed by Eaton's selling Simpson's stock or assets that Eaton's acquires in the leveraged buyout e. is financed by Simpson's going bankrupt allowing Eaton's to buy its stock or assets below value (which means leveraged)
The United States has a more equal income distribution than many developing economies such as Mexico, South Africa, and Brazil
a. True b. False Indicate whether the statement is true or false
A good is produced by a firm in 2009, added to the firm's inventory in 2010, and sold to a household in 2010 . As a result, on net,
a. 2009 GDP increased and 2010 GDP decreased. b. 2009 GDP decreased and 2010 GDP increased. c. 2009 GDP did not change and 2010 GDP increased. d. 2009 GDP increased and 2010 GDP did not change.