Convergence Will Not Happen If Economies Around the World Have

question 25

Multiple Choice

Convergence will not happen if economies around the world have:

• A)different saving rates.
• B)different average products of capital in the transition.
• C)different levels out labour input.
• D)all of the above.

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Definitions:

Countercyclical Payments

Government payments in the agricultural sector that increase when market prices are low and decrease when market prices are high, intended to stabilize farmers' incomes.

Agricultural Risk Coverage

A policy program in the United States providing income support to farmers against lower revenue from drops in market prices or yields.

Economic Effects

The impact of economic activities and policies on the overall condition of the economy, including effects on growth, inflation, and employment.

Government Price Supports

Programs or policies implemented by a government to maintain the market price of a good or service at a certain level.