In Growth Theory Analysis, "Convergence" Occurs When

question 21

Multiple Choice

In growth theory analysis, "convergence" occurs when

• A) all countries begin to think similarly about the distribution of income.
• B) growth rates for all countries in the same geographical region move to the same level.
• C) per-capita income levels between nations become equal.
• D) political parties in a nation work out their differences and merge into one party.
• E) none of the above.

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Definitions:

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance.

Net Working Capital Turnover

A ratio that measures how effectively a company is using its net working capital to generate sales.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per dollar of revenue generated, indicating the intensity of the capital used in the business operations.