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:

Average Variable Cost

The total variable costs divided by the quantity of output, representing the variable cost per unit of output.

Marginal Cost

The escalation in total financial outlay due to the creation of one more unit of a product or service.

Average Total Cost

Calculated by dividing the total cost to produce a product by the quantity of the product produced, it represents the per-unit cost of production.

Bygones

In economics, the principle of "letting bygones be bygones" implies that past costs, which cannot be recovered, should not factor into future economic decisions.