Nations with Low Levels of GDP Per Capita May Converge

question 93

Multiple Choice

Nations with low levels of GDP per capita may converge to richer nations if

• A) nations with high levels of income experience a continuously increasing growth rate.
• B) nations with lower levels of income grow more quickly than those with higher levels of income.
• C) nations with lower levels of income spend less on investment.
• D) nations with lower levels of income grow more slowly than those with higher levels of income.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Incremental Revenue

Additional income generated from selling more units of a product or from launching a new product or service.

Relevant Information

Information that is applicable and crucial to the decision-making process, having the ability to affect the outcome of a decision.

Opportunity Cost

The value of the best alternative foregone as a result of choosing a different option.