Which of the Following Statements Is True of Economic Growth

question 78

Multiple Choice

Which of the following statements is true of economic growth and GDP across the world before 1800?

• A) There was a lack of sustained growth because the pace of technological change was slow.
• B) The income per capita in all countries throughout the world was less than $500 per capita.
• C) The income per capita in all countries throughout the world was more than $1,000 per capita.
• D) There was sustained growth because whatever improvements in GDP were realized were invested in capital equipment.

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Definitions:

Security Market Line

A representation in the Capital Asset Pricing Model (CAPM) that displays the relationship between the expected return of an investment and its risk.

Expected Return

The anticipated profit or loss from an investment over a given period, based on historical averages or statistical analyses.

Risk-Free Rate

The return on an investment with zero risk, typically represented by government securities.

Expected Return

Expected Return is the average return an investment is projected to generate, based on historical data or probabilistic modeling.