Evidence of a Negative Correlation Between Income Per Capita and Population

question 27

Multiple Choice

Evidence of a negative correlation between income per capita and population growth rates ________.

• A)implies that birth control is most effective in low-income countries
• B)has not been found in the available data
• C)is consistent with the Solow model
• D)suggests that population growth stimulates technological progress

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Definitions:

Dividend-payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company’s total earnings.

Growth Rate

The rate at which a company, economy, or investment grows over a specific period, often expressed as a percentage.

Financial Leverage

Financial leverage is the use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.

Dividend Discount Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.