Consider Two Countries: Country a and Country B

question 4

Multiple Choice

Consider two countries: Country A and Country B.Both countries are identical in all aspects except one.In Country B,it is possible for entrepreneurs to borrow money from banks and financial markets,while in Country A,no loans are given for entrepreneurship.Given this information,which of the following statements is likely to be true?

• A) Country A is likely to grow faster than Country B.
• B) Country B is likely to grow faster than Country A.
• C) Both countries are likely to grow at the same rate.
• D) Resources are likely to be overconsumed in Country A and underconsumed in Country B.

---

Definitions:

Wages

The fixed regular payment, usually calculated on an hourly, daily, or weekly basis, paid by an employer to an employee for work performed.

Leisure

Time spent away from work and other obligations, used for relaxation or chosen activities.

Uber

A technology platform that offers services such as ride-hailing, food delivery, and a freight transportation, revolutionizing traditional transportation and logistic services.

Income Effect

Variations in the income levels of an individual or within an economy, and how these variations influence the demand for specific goods or services.