Which characteristic of economic growth is responsible for the large differences in GDP per capita across countries?
What will be an ideal response?
Economic growth is exponential in nature and this in one of the major reasons for the large differences in GDP per capita across countries. When an economy grows exponentially, new growth builds on past growth and the effects of growth compound. This implies that relative modest differences in growth rates translate into large differences in the level of GDP per capita after many years of growing.
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According to Samuel Huntington, South Korea's economy experienced rapid economic growth because South Koreans valued thrift, investment, education, and discipline
On the other hand, Ghana's economy did not grow as fast because the country had different social values. This argument claims that: A) geographical location is a fundamental cause of prosperity. B) culture is a fundamental cause of prosperity. C) institutions are a proximate cause of prosperity. D) institutions are a fundamental cause of prosperity.
An effective rent control will
A) lead to a surplus of housing units. B) keep rents below the competitive market level. C) keep rents above the competitive market level. D) be set at the price where quantity supplied equals quantity demanded.
The phrase "to spread the overhead" refers to reducing the costs that are not directly attributable to the production process
a. True b. False Indicate whether the statement is true or false
When the long-run aggregate supply curve shifts right, it represents:
A. an unemployment rate of zero. B. economic growth. C. pushing our economy beyond normal capacity. D. negative inflation.