Unconditional Convergence Means That in the Long Run

question 51

Multiple Choice

Unconditional convergence means that in the long run

• A)living standards converge only within groups of countries having similar characteristics.
• B)living standards converge only for countries that have the same initial capital-labour ratio.
• C)living standards around the world become the same.
• D)differences persist in living standards around the world.

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Definitions:

Product Shortage

A situation where the demand for a product exceeds the supply available in the market.

Quantity Demanded

The total amount of a good that consumers are willing and able to purchase at a given price in a specified period.

Quantity Supplied

The complete quantity of a product or service that suppliers are prepared to offer for sale at an established price during a defined timeframe.

Price Of Product

The amount a customer pays to acquire a product or service.