Suppose Two Countries Have Identical Growth Rates of Real GDP

question 173

Multiple Choice

Suppose two countries have identical growth rates of real GDP and the same initial value of per capita real GDP. We know, then, that

• A) life expectancies are the same in both countries.
• B) economic well being is the same in both countries.
• C) living standards may differ in the two countries because we don't know how income is distributed in the countries.
• D) living standards in the two countries are probably identical, or very close to each other.

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Definitions:

Dishonored

Used to describe a check or promissory note that has been presented for payment but is refused by the bank due to insufficient funds or other reasons.

Settlement

The process of concluding a transaction or an agreement by completing all procedural and payment aspects.

Account Receivable

Accounts Receivable represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Allowance Method

An accounting technique used to account for bad debts by estimating and setting aside a portion of accounts receivable deemed unlikely to be collected.