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Suppose Economies a and B Have the Same Initial Level

question 95

Multiple Choice

Suppose economies A and B have the same initial level of GDP per capita at $15,000, and each economy begins with a constant growth rate of 1 percent per year. (Neither country has good institutions for economic growth at first.) Then Country A enters an era of political stability, establishes property rights, and installs incentives for entrepreneurship. Country A's economic growth rate consequently improves to 5 percent. Assuming population growth rates remain unaffected, how much longer will it take Country B to double its per capita GDP level compared to Country A?

Distinguish between medieval scholasticism and Renaissance humanism in terms of goals and outlooks.

Grasp Machiavelli's political theories and values.

Appreciate the role of city-states in Italian politics and economics during the Renaissance.

Understand the impact of foreign invasions and influence on the Italian peninsula during the Renaissance.

Definitions:

Universal Theory

A concept or idea that is believed to apply universally across cultures, situations, or conditions, often seeking to explain a broad phenomenon.

Think Strategically

The ability to envision long-term goals and objectives, and to formulate plans and approaches that ensure the achievement of these goals in an efficient and effective manner.

Big Picture

An overall or comprehensive view or perspective of a situation or problem, focusing on the main, broad aspects rather than small details.

Path-Goal Theory

A theory of leadership that focuses on how leaders can motivate subordinates to achieve their goals and improve their own performance by selecting specific behaviors tailored to their needs.