Ecuador's GDP per capita in 2017, based on market exchange rates, was $5,600. In that same year, Ecuador's GDP per capita based on purchasing power parity was $11,100. The difference between these two measures of GDP per capita is most likely explained by:
A. credentialism.
B. Ecuador's limited capital account convertibility.
C. Ecuador's dual economy.
D. differences in relative prices between Ecuador and other countries.
Answer: D
You might also like to view...
Alpha is a developed economy with a growth rate of 2%. Omega is a developing economy with a growth rate of 8%. Assuming these growth rates remain constant, we would predict ________.
A. Alpha will always have a higher per capita real GDP than Omega, but the gap between them will shrink B. Omega's per capita real GDP will eventually catch up to Alpha's C. Alpha will always have a higher per capita real GDP than Omega D. Alpha will always have a higher per capita real GDP than Omega and the gap will continue to widen
In the short run, a profit-maximizing firm will shut down if its total revenue is greater than its variable costs
Indicate whether the statement is true or false
The Federal Open Market Committee usually meets ________ times a year
A) four B) six C) eight D) twelve
Discretionary fiscal policy entails
A. automatic changes in spending or taxes that occur as economic conditions change. B. changing government spending or tax policy to offset automatic stabilizers. C. legislative changes in spending or tax policies. D. actions exercised by the President alone in the United States.