Suppose There Are Two Countries That Are Identical with the Following

question 23

Multiple Choice

Suppose there are two countries that are identical with the following exception.The saving rate in country A is greater than the saving rate in country B.Given this information,we know that in the long run

• A)the capital-labor ratio (K / N)will be greater in B than in A.
• B)the capital-labor ratio (K / N)will be greater in A than in B.
• C)the capital-labor ratio (K / N)will be the same in the two countries.
• D)economic growth will be higher in A than in B.

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Definitions:

World System Theory

A sociological theory focusing on the global economic system as a complex structure influencing countries’ development and interactions through capital and trade.

Economic Hierarchy

A ranking of individuals or groups according to economic power, wealth, or status, affecting their access to resources and opportunities.

Political Hierarchy

A structured ranking system within a political entity or organization, where power and authority are distributed among different levels.

Modernization Theory

A theory which suggests that as societies undergo economic development, they will also experience cultural and social changes that lead them towards becoming more 'modern' or industrialized.