The Following Graph Shows: No Systematic Tendency for Poorer Countries

question 4

Multiple Choice

The following graph shows: No Systematic Tendency for Poorer Countries to "Catch Up"
Source: Heston,et al.(2012) .

• A) lower income countries consistently grew faster than higher income countries.
• B) the average income of lower income countries eventually will catch up with developed country levels.
• C) no tendency that lower income countries are growing faster than higher income countries.
• D) the growth rates of many lower income countries are similar

---

Definitions:

FIFO Inventory Valuation

An accounting method for valuing inventory where the first items placed in inventory are the first ones sold, affecting cost of goods sold and ending inventory valuation.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are deducted.

Gross Profit

The income a business earns after subtracting the expenses involved in producing and selling its goods or delivering its services.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods once they are shipped by the seller; the buyer pays for shipping costs.