Consider the Data in the Following Table Do the Data Match the Experience of a Developed Country

question 51

Multiple Choice

Consider the data in the following table.
$$\begin{array} { l c c } \hline \text { Year } & \begin{array} { c } \text { Growth Rate of } \\\text { Real Investment }\end{array} & \begin{array} { c } \text { Growth Rate } \\\text { of Real GDP }\end{array} \\\hline 1 & 0 \text { percent } & 2 \text { percent } \\2 & - 2 \text { percent } & - 3 \text { percent } \\3 & 3 \text { percent } & 5 \text { percent } \\4 & - 1 \text { percent } & 0 \text { percent } \\5 & 1 \text { percent } & 1 \text { percent } \\\hline\end{array}$$

Do the data match the experience of a developed country like the United States?

• A) Yes, because the two growth rates are positively correlated.
• B) No, because the two growth rates should be positively correlated.
• C) Yes, because the two growth rates are negatively correlated.
• D) No, because the two growth rates should be negatively correlated.
• E) Yes, because these two growth rates are unrelated.

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Definitions:

Marginal External Cost

The cost of producing an additional unit of a good or service that is borne by individuals other than the producer, typically not reflected in the market price.

Park Visitation Fee

A charge imposed on visitors for access to a park, used to fund conservation efforts, maintenance, and improve the visitor experience.

National Parks

Protected areas of natural significance designated by national governments for conservation purposes, and for the enjoyment and recreation of the public.

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.