Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?
I. Small differences in rates of economic growth can lead to large differences in levels of potential output over time.
II. From the perspective of the rule of 72, small differences in rates of economic growth between two countries will not significantly affect their respective standards of living.
III. Countries that have higher population growth rates are likely to see higher economic growth rates because increases in population lead to increases in the size of the labor force.

• A) I and III
• B) II and III
• C) I only
• D) II only
• E) III only

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Definitions:

Prospectus

A legal document issued by companies that are offering securities for sale, which provides details about the investment, including risks, objectives, and financial statements.

Registration Statement

A set of documents submitted to securities authorities (like the SEC) that provides essential facts and information about an investment offering for sale to the public.

Directors

Members of a company's board who are elected by shareholders to make major decisions regarding the company, establish policies, and oversee the overall management.

Securities

Tradable financial assets such as stocks, bonds, and options, valued for investment and trading purposes.