Suppose Two Countries Warzonka and Madiz Initially Have the Same

question 99

Multiple Choice

Suppose two countries Warzonka and Madiz initially have the same real gross domestic product (GDP) per capita. Warzonka experiences no economic growth, while Madiz grows at a sustained rate of 5 percent. In 14 years, Warzonka's GDP will approximately be _____ of that of Madiz.

• A)one-fourth
• B)half
• C)double
• D)triple
• E)one-third

Understand the concept of rent-seeking and its implications on society.

Analyze the consequences of government policies that socialize losses and privatize gains.

Explore the special-interest effect and its impact on economic policy and society.

Recognize the unintended consequences of government regulations and their effects on the economy.

---

Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted into cash within a year.

Return on Investment

measures the gain or loss generated from an investment relative to its cost, providing insight into the efficiency of the investment.

Profit Centre Managers

Individuals responsible for overseeing profit centres, areas within a business that are directly responsible for generating revenue exceeding their operating costs.

Pricing

The process of determining what a company will receive in exchange for its products or services.