Which of the Following Is Most Important If a Country

question 79

Multiple Choice

Which of the following is most important if a country is going to grow rapidly and achieve a high level of per capita income?

• A)an abundance of natural resources
• B)a warm moist climate
• C)a small population relative to the geographic size of the country
• D)institutions and policies that encourage people to engage in productive activities

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate reflection of an economy's size and growth.

Inventory Adjustments

Changes made to the recorded amount of inventory to account for discrepancies, damages, losses, or theft.

Aggregate Expenditure Line

A graphical representation in macroeconomics that shows the total spending on goods and services in an economy at various levels of income.

Real GDP

Gross Domestic Product adjusted for inflation, representing the value of all goods and services produced over a specific time period in real terms.