Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A) Countries all have the same growth rate and level of output because any country can obtain the same factors of production.
• B) Countries have great variance in both the level and growth rate of GDP/person; thus, poor countries can become relatively rich over time.
• C) Countries may have a different level of GDP/person but they all grow at the same rate.
• D) Countries may have a different growth rate but they all have the same level of GDP/person.

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Definitions:

Demand Curve

A graph that illustrates the relationship between the price of a good or service and the quantity demanded by consumers.

Price and Demand

Describes the relationship between the price of a good or service and the willingness of people to either buy or sell it at that price.

Assumption

A belief or statement taken for granted without proof, often serving as a basis for further reasoning or arguments.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance fees.