The study behind the graphic for India, China, Brazil and the US showing income groups and percentages of total country income for each group highlights that how much of the differences in living standards can be explained by differences between countries:
A) 20%
B) 45%
C) 66%
D) 90%
Answer: C) 66%
You might also like to view...
The study of economics is best described as a study of
A) capitalism. B) the factors that influence the stock and bond markets. C) the choices made in producing goods and services. D) how people earn a living. E) coping with scarcity, and choices made as a result of scarcity in a society.
Western expansion put whites on a collision course with the indigenous people of North America. The major policy of the U.S. government was to
(a) basically ignore them as a separate group and allow them to be naturally assimilated into American life over time. (b) confine them to reservations where they could practice their tribal customs, they could be completely separate from white society with no interference in their affairs, and they could continue to develop and grow their customs and norms based on traditional ways. (c) enslave them as a source of labor for the plantation system. (d) "civilize" them by replacing tribal social structures and values with those more appropriate to white society, such as individual ownership of property, competitive striving for material gain, farming activities for Native American men and housekeeping for Native American women and the replacement of native languages with English among children.
Some firms provide stock options to managers as an incentive to work hard and increase the value of the firm. A typical option contract gives the manager the right to buy the firm's stock at a set price (known as the exercise price)
If the firm's stock value increases and moves above the exercise price, then the manager's option becomes more valuable. What is the potential problem with this incentive scheme? A) The incentive does not include a performance benchmark, so it cannot be optimal. B) There is a dynamic incentive problem --- the manager may focus too much on the firm's short-run stock value and not on actions that are in the best interest of the firm for the long run. C) The incentive value depends on the firm's stock value, which cannot be influenced by the amount of work or effort exerted by the manager. D) There are no problems with this incentive scheme.
Consider a mutual fund with a 6 percent back-end load that decreases to 0 percent in the seventh year. How much of the load will an investor have to bear if she sells it off in the second year?
a. 4 percent of the load b. 3 percent of the load c. 6 percent of the load d. 5 percent of the load e. 2 percent of the load