If a Rich Country Grows at a Faster Rate Than

question 49

Multiple Choice

If a rich country grows at a faster rate than a poor one, then

• A) the difference in their living standards will not change over time.
• B) whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.
• C) the gap in their standard of living will widen over time.
• D) the gap in their standard of living will close over time.

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Definitions:

Mean

The arithmetic average of a set of values, calculated by summing all the values and then dividing by the number of values.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most values cluster around the mean.

Basis

The underlying support or foundation for an idea, argument, or process, often used in various contexts like mathematics, finance, and other disciplines.

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.