Comparing Per-Capita Incomes of Many Developing Countries and Industrial Countries,we

question 194

Multiple Choice

Comparing per-capita incomes of many developing countries and industrial countries,we tend to see

• A) lower per-capita incomes in industrial countries
• B) lower per-capita incomes in developing countries
• C) identical per-capita incomes in developing countries

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Definitions:

Budget Deficit

Occurs when a government's expenditures exceed its revenues over a set fiscal period, leading to a shortfall that must be borrowed.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Deficit

A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.

Current Expenditures

Spending by the government or an organization on short-term items that are consumed within the fiscal year, such as wages, utilities, and supplies.