In 1960 the Per Capita GDP of Hong Kong Was

question 68

Multiple Choice

In 1960 the per capita GDP of Hong Kong was substantially less than that of Argentina and Venezuela. By 2005, the per capita income of Hong Kong was more than three times the figures for Venezuela and Argentina. This dramatic change occurred because

• A) Venezuela and Argentina lacked the natural resources of Hong Kong.
• B) the United States provided aid to Hong Kong but not to Argentina and Venezuela.
• C) Hong Kong was able to achieve and sustain a high rate of economic growth while the growth rates of Argentina and Venezuela were exceedingly low.
• D) Hong Kong was a developed country in 1960, but Argentina and Venezuela were not.

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Definitions:

CAFR

Comprehensive Annual Financial Report, detailed financial report used by governments to provide a full overview of financial status.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term to lease a similar asset.

Implicit Interest Rate

The interest rate inferred from the lease payments in a leasing agreement, indicating the cost of borrowing over the lease term.