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
Answer: B
You might also like to view...
New growth theory
A) states that the rate of technological change is caused by economic incentives. B) states that the rate of technological change is determined outside the working of the market system. C) states that the rate of technological change is unaffected by economic incentives. D) does not adequately explain the factors that determine productivity.
If there was no profit effect or misperception effect in the short run, then SRAS is ____ and LRAS is ____
a. upward sloping; upward sloping b. upward sloping: vertical c. vertical; upward sloping d. vertical; vertical
Specialized task assignment's greatest cost is ignoring the foregone ________ across tasks.
A. lower cross-training costs B. complementarities C. flexibility D. comparative advantage
A consumer has spent all of his funds on hamburgers and movies. The price of a hamburger is $1 and the price of a movie is $5. The marginal utility of the last hamburger is 5 and the marginal utility of the last movie is 40. This consumer has
A) not maximized utility. To maximize utility, he should cut back on movies and buy more hamburgers. B) not maximized utility. To maximize utility, he should cut back on hamburgers and buy more movies. C) not maximized utility. To maximize utility, he should cut back consumption of each. D) maximized utility.