According to a Regression of Market Cap on GDP Virtually

question 53

Multiple Choice

According to a regression of market cap on GDP virtually all countries without major oil revenues that restrict private sector growth and/or suffer from major political strife wind up with _______ per capita GDP than/as predicted by the regression.

• A) higher
• B) lower
• C) equal
• D) sometimes lower and sometimes higher

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate and applies it to the reducing book value each year.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making the expense predictable.

Accounting Principles

Fundamental guidelines or rules that govern the financial reporting and accounting practices of companies, ensuring accuracy, consistency, and fairness in financial statements.

Prospectively

Prospectively means looking forward or considering future events, often used in accounting in terms of adopting new policies for future transactions.