Which of the Following Is True Concerning the Growth Record

question 3

Multiple Choice

Which of the following is true concerning the growth record of less developed countries (LDCs) during the last several decades?

• A) The per capita GDP of several poverty stricken African countries was lower in 2009 than in 1980.
• B) None of the LDCs have been able to match the per capita income growth rate of the United States.
• C) During the last two decades, the fastest growing countries in the world (those with annual real growth rates of 3.5 percent or more) have been LDCs.
• D) Both a and c are correct.
• E) All of the above are correct.

---

Definitions:

Aversion to Ambiguity

Aversion to ambiguity refers to an individual's tendency to avoid choices or decisions when information is unclear or incomplete, reflecting a preference for certainty.

Limits to Arbitrage

The constraints that prevent traders from exploiting price discrepancies in financial markets, thus allowing inefficiencies to persist longer than they would otherwise.

Trading Volume

It denotes the total number of shares or contracts traded for a specific security or market during a given period.

Bubble

A situation where observed prices soar far higher than fundamentals and rational analysis would suggest.