If a rich country grows at a faster rate than a poor one, then
A) the gap in their standard of living will widen over time.
B) the gap in their standard of living will close over time.
C) the difference in their living standards will not change over time.
D) whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.
A
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Price and total revenue are inversely related when demand is
A. perfectly price inelastic. B. price elastic. C. price inelastic. D. unit price elastic.
The branch of economic theory that analyzes decisions about education and training is
A. welfare economics. B. equilibrium analysis. C. human capital theory. D. consumption theory.
Which of the following examples has the highest opportunity cost?
a. When interest rates are at 10 percent, Krisjan places all of his wages into a checking account. b. Katrin considers placing money in a Treasury Bill with interest of 7 percent, but decides against it. c. Gunnar decides not to invest in a CD that has an interest rate of 5 percent. d. When interest rates are at 3 percent, Freyja decides to use her money for everyday expenses.
A seller is willing to sell 5 units of a good at a minimum price of $1 per unit. The reservation value of the seller in this case is:
A) $1. B) $5. C) $6. D) $10.