Assume a DVC Has a Real Per Capita Output of $1,000

question 103

Multiple Choice

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

• A)remain unchanged at $19,000.
• B)increase by $760.
• C)decrease by $1,000.
• D)increase by $19,760.

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Definitions:

Independent Businessperson

An individual who operates and manages their own business, making decisions independently, often bearing the risks and rewards of the enterprise.

Regional

Pertaining to or characteristic of a specific area or part of a country or the world.

National Organization

A group or institution that operates across an entire country, often focusing on specific social, professional, or charitable objectives.

First Amendment

In the context of contracts, it refers to the initial modification or alteration made to an original contract agreement. In a broader U.S. constitutional context, it refers to the amendment that protects freedoms concerning religion, expression, assembly, and the right to petition.