Countries with Different Initial Levels of Per Capita Income May

question 14

Multiple Choice

Countries with different initial levels of per capita income may gravitate to a similar level of per capita income.Economists call this phenomenon ________.

• A)convergence
• B)simulation
• C)gravitation
• D)depreciation

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Definitions:

Tenth Amendment

An amendment to the U.S. Constitution stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Federal Government

The national government of the United States, composed of three branches: legislative, executive, and judicial.

Lower-Level Governments

Administrative divisions within a country that operate below the level of the central government, such as states or provinces.

Direct Taxation

Taxes that are imposed directly on an individual's income or wealth, and on corporations' profits.