Evidence Shows That Other Things the Same, Poor Countries Grow

question 206

Multiple Choice

Evidence shows that other things the same, poor countries grow

• A)faster than rich countries. However, no country that was poor in 1870 is now rich.
• B)faster than rich countries. In fact, some countries that were poor in 1870 are now rich.
• C)slower than rich countries. In fact, no country that was poor in 1870 is now rich.
• D)slower than rich countries. However, some countries that were poor in 1870 are now rich.

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Definitions:

Isocost Line

A graph representing all combinations of the inputs' quantities that equal a certain cost.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to generate wealth through investment.

Labor

Refers to human efforts used in the production of goods and services.

Cost Of Capital

The minimum profit percentage a corporation needs to achieve on its ventures to sustain its market value and draw in capital.