Which of the Following Does Not Contribute to the Explanation

question 77

Multiple Choice

Which of the following does not contribute to the explanation why some countries have not experienced relatively high growth rates in real GDP per capita despite relatively low initial levels of real GDP per capita?

• A)Many of these developing countries do not have a functioning court system that can enforce laws.
• B)Countries that are relatively poor are more likely to experience wars and revolutions.
• C)Countries that are relatively poor are likely to have a lower quality of health care and education.
• D)Countries that are relatively poor are more likely to have higher savings.
• E)Countries that are relatively poor or more likely to have free trade agreements with wealthy countries.

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Definitions:

Supply and Demand

Supply and demand is an economic model that explains the interaction between the availability of a resource and the desire for that resource, affecting its price.

Bid-ask Spread

The difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.

Market Maker

A participant in the financial markets who stands ready to buy and sell securities regularly at their own risk to provide liquidity and help the market function smoothly.

Widgets

Generic term for any unspecified or hypothetical device or product, often used in business or economics as a placeholder name.