How Would You Define Convergence

question 100

Multiple Choice

How would you define convergence?

• A) tendency for gaps between industrial countries' per-capital incomes to narrow
• B) tendency for gaps between all countries' per-capital incomes to narrow
• C) the theory that a crisis in a low-income country will spread to all countries, regardless of debt structure
• D) the theory that a crisis in a low-income country will spread to only those countries which had lent money to the original country
• E) tendency for the world distribution of income to be persistently unequal

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Definitions:

Average Fixed Costs

Costs in production that are stable and do not vary with the amount of output, divided by the quantity of goods produced.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a certain period.

Total Cost Schedule

A detailed list that shows the total cost incurred at various levels of output or production.

Total Variable Cost

The sum of all costs that vary with the output level in the production of goods or services.