A Country That Has a Large Real GDP Per Person

question 141

Multiple Choice

A country that has a large real GDP per person might not necessarily have a high level of economic welfare because it may have

• A) environmental problems.
• B) very little political freedom.
• C) little leisure time.
• D) All of the above answers are correct.

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Definitions:

Subprime Loans

Subprime loans are offered to individuals with poor credit scores who are considered high-risk borrowers, typically featuring higher interest rates than prime loans.

Securitized

Refers to the process of pooling various types of debt—including mortgages, car loans, or credit card debt—and selling them as consolidated financial instruments to investors.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and guidelines used to prepare and present financial statements in the U.S.

Collateralized Borrowing

A method of borrowing where the borrower pledges an asset as security or collateral for the loan, which the lender can claim if the loan is not repaid.