In General, If Country a Is Accumulating Capital at a Faster

question 105

Multiple Choice

In general, if country A is accumulating capital at a faster rate than country B, then country A

• A)will soon have a comparative advantage in the production of most goods.
• B)is using a larger proportion of resources to produce consumption goods.
• C)will have a production possibilities frontier that is shifting out faster than country B's.
• D)will have a higher rate of inflation than country B.
• E)will have more unemployment than country B.

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Definitions:

Private and Public Sectors

The division of the economy into two parts; the private sector involves businesses owned by individuals or companies, and the public sector involves organizations owned and operated by the government.

Union Density

The ratio of unionized workers to the total number of workers, indicating the prevalence of union membership within a particular labor market.

United States

A country in North America, consisting of 50 states, a federal district, and several territories, known for its diverse culture and significant impact on global affairs.

Unions

Organizations formed by workers to collectively bargain with employers for better wages, working conditions, and other employment rights.