Consider Two Economies: Economy a and Economy B

question 80

Multiple Choice

Consider two economies: Economy A and Economy B.In Economy A,the work culture is such that people do not mind working 12 hours a day.On the contrary,in Economy B,people work a maximum of 6 hours a day.If the culture hypothesis holds,then ________.

• A) both economies are likely to grow at the same rate
• B) Economy A is likely to grow faster than Economy B
• C) Economy B is likely to grow faster than Economy A
• D) the growth rates in both economies are likely to fluctuate randomly

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Definitions:

Tactical

Pertaining to actions or strategies carefully planned to achieve a specific end, typically in the military or in business contexts.

Strategic

Refers to a high-level plan or approach designed to achieve long-term or overall goals.

Biased Forecast

A forecast that consistently tends to overestimate or underestimate the actual value due to systematic errors.

Naive Approach

A forecasting technique that assumes that demand in the next period is equal to demand in the most recent period.