The Convergence Hypothesis Says That International Differences in GDP Per

question 72

Multiple Choice

The convergence hypothesis says that international differences in GDP per capita tend to _____ over time.

• A) narrow
• B) expand
• C) remain steady
• D) narrow and then expand

---

Definitions:

Dividends

Money distributed to a company's shareholders, often from its profits.

Holding Period

The duration of time an investment is held before it is sold or disposed of.

Liquidation Value Per Share

The amount of money that would be received per share if all of a company’s assets were sold at their current values and the proceeds distributed to shareholders.

Common Share

A type of stock that signifies ownership in a corporation and represents a claim on part of the company's profits or losses.