Convergence of Economies Is the Tendency According to the Solow

question 52

Multiple Choice

Convergence of economies is the tendency according to the Solow growth model for:

• A)richer countries to buy up all the capital in poorer countries.
• B)richer countries to tend decline as pollution damage increases.
• C)poorer economies to grow faster in terms of real GDP per capita than richer countries.
• D)the tendency for richer economies to shrink to the size of poorer economies.

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Definitions:

Variance Investigation

The process of examining the reasons behind differences between budgeted and actual figures in finance and accounting.

Direct Material Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valued at the standard cost.

Cost Standards

Benchmarks or predetermined costs relating to the production of goods or services, serving as a yardstick for measuring actual performance against expected costs.

Direct Material Quantity Variance

The difference between the actual quantity of direct material used and the expected quantity, multiplied by the standard cost per unit.