Why Do Very Small Differences in Annual Growth Rates Amount

question 96

Multiple Choice

Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?

• A) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain
• B) because the annual growth rate is compounded over time
• C) because the slower-growing countries save too much
• D) because the slower-growing countries don't export enough

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Definitions:

Kidney

A pair of organs located in the abdominal cavity that filter blood, remove waste products, and regulate fluid balance.

Pancreas

A glandular organ in the digestive system that produces insulin, digestive enzymes, and other hormones.

Thoroughfare Channel

Channel for blood through a capillary bed from an arteriole to a venule.

Capillary Bed

A capillary bed is a network of capillaries, which are small blood vessels, where exchange of water, oxygen, carbon dioxide, and many other nutrient and waste chemical substances occur between blood and surrounding tissues.