The Countries with the Lowest Output Per Capita

question 2

Multiple Choice

The countries with the lowest output per capita

• A)are rich with human capital, but have little physical capital.
• B)are rich with physical capital, but have little human capital.
• C)are poor in both human and physical capital.
• D)have low living standards in spite of relatively high levels of both human and physical capital.
• E) may or may not be poor in human capital, depending on whether the exchange rate or purchasing power parity method is used for comparison.

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered or reversed.

Model 240 Machine

A hypothetical or specific name for a machine, possibly denoting a particular model or type used in manufacturing or industrial settings.

Contribution Margin

The amount of revenue remaining after deducting variable costs, available to cover fixed costs and contribute to profits.

Selling Price

The selling price of a product or service to buyers.