If GDP in a Richer Country Grows at the Same

question 63

Multiple Choice

If GDP in a richer country grows at the same annual rate as in a poorer country,the

• A)gap between their standards of living will widen over time.
• B)gap between their standards of living will close over time.
• C)gap between their standards of living will close over time as long as the rate of population growth is lower in the poorer country.
• D)gap between their standards of living will close over time as long as the rate of population growth is lower in the richer country.
• E)difference in their living standards will not change over time.

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Definitions:

Depreciation Expense

The portion of an asset's cost allocated over its useful life to account for its decline in value over time.

Useful Life

The duration over which an asset is expected to be economically viable and useful to the owner.

Depreciation Expense

The systematic allocation of an asset's cost over its useful life, reflecting the consumption or wear and tear of the asset.

Residual Value

The anticipated monetary value of an asset at the end of its operational life.