Recent Evidence Shows That There Is a

question 33

Multiple Choice

Recent evidence shows that there is a

• A) negative correlation between the population growth rate and income per worker across countries.
• B) positive correlation between the population growth rate and income per worker across countries.
• C) negative correlation between the savings rate and the quantity of income per worker.
• D) positive correlation between labour force growth and the quantity of income per worker.
• E) negative correlation between capital investment and quantity of income per worker.

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Definitions:

Binding Price Floor

A government-imposed price control that sets a minimum price for a good or service above the equilibrium price, leading to excess supply.

Surplus

The excess of production or supply over demand, often leading to lower prices or wasted resources if not managed effectively.

Binding Price Floor

A government-imposed price control or limit on how low a price can be charged for a commodity, set above the equilibrium price, leading to a surplus of the product.

Surplus

A situation where the quantity of a product or service exceeds the quantity demanded, often leading to lower prices or wasted resources.