The Primary Reason Why Countries Around the World Have Not

question 139

Multiple Choice

The primary reason why countries around the world have not converged to the same level of income is that they

• A) do not have access to the same resources.
• B) do not have the same level of the capital stock.
• C) have different numbers of people.
• D) have different institutions.
• E) do not have access to the same technology.

---

Definitions:

Issued Stock

Shares of a company that have been allocated and distributed to shareholders.

Preemptive Right

This is a shareholder's right to buy new shares in proportion to their current holdings before the shares are offered to the public, helping to maintain their ownership percentage.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Par Value

A nominal value assigned to share certificates, bond certificates, or currency, which has little bearing on its market value.