Which of the Following Is NOT a Real World Factual

question 112

Multiple Choice

Which of the following is NOT a real world factual conflict with the neoclassical growth model?

• A)Income per capita varies greatly across countries.
• B)Poor countries do not have a higher rate of return on capital.
• C)Immigrant labor from poor countries experiences very small increases in income when it moves to rich countries.
• D)Poor countries' income levels have not converged to the income levels of rich countries.

---

Definitions:

Common Stock

Represents ownership shares in a corporation, providing voting rights and potential dividends to shareholders.

Paid-In Surplus

Additional capital that is contributed by shareholders above the par value of the shares, also known as additional paid-in capital.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity.