Which Statement Best Describes the Relationship Between the Initial Wealth

question 8

Multiple Choice

Which statement best describes the relationship between the initial wealth and the growth rate of a country?

• A) Countries with the highest growth rates over the past 100 years are the ones that had the highest level of real GDP 100 years ago.
• B) Countries that were rich a century ago had little fluctuation around their average growth rates during the past 100 years.
• C) Though the catch-up effect may suggest otherwise,the data show no strong relationship between initial conditions and growth rates.
• D) Over the past century,the United States had the highest real GDP growth rate,and now it has the highest real GDP per person.

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Definitions:

Logistical Function

The aspect of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information.

Transactional Function

Activities involved in transferring ownership or physical possession of goods from one party to another.

Facilitating Function

Activities that help in the smooth transaction of goods and services from producers to consumers, such as transportation and storage.

Product Assortments

The range or variety of product lines and individual products that a company offers for sale to its target market.