Physical Capital Differences Across Countries Can Be Seen in the Fact

question 6

Multiple Choice

Physical capital differences across countries can be seen in the fact that

• A) furniture factories in China use machines like those in North America.
• B) the iPhone's components are produced in 30 countries.
• C) advanced economies produce 53 per cent of the world's income.
• D) more advanced economies typically have more sophisticated technology.
• E) students in India study the same subjects as those in Australia.

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Definitions:

Federal Reserve

The Federal Reserve, often referred to as "the Fed," is the central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services to governmental agencies.

Reserve Ratio

The reserve ratio is the fraction of deposits that regulators require a bank to hold in reserve and not lend out. This is a tool used by central banks to control the money supply.

Goldsmith

A craftsman who makes jewelry, utensils, and various art pieces out of gold, and historically also dealt in gold, silver, and banking activities.

Gold Coins

These are coins made primarily or entirely of gold, often used historically as currency and now commonly collected as investment or numismatic items.