Since 1980, There Has Been Substantial Closure of the Gap

question 224

Multiple Choice

Since 1980, there has been substantial closure of the gap in real GDP per person between which of the following groups of countries?

• A) the United States and Canada
• B) the United States and Europe's Big Four
• C) the United States and Japan
• D) the United States and China

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Definitions:

Binding Price Floor

A minimum price set by the government for certain goods and services that is above the equilibrium price, causing a surplus.

Unwanted Surplus

An excess of goods that exceeds consumer demand, leading to unsold stock and potential waste.

Inefficiencies

Refers to situations where resources are not used in the most effective way, leading to waste or lost potential benefit.

Taxicab Medallions

License plates required for taxicabs that signify they are legally registered to operate; these medallions are often subject to municipal limitations and can be quite valuable.