According to the Convergence Hypothesis, Differences in GDP Per Capita

question 114

Multiple Choice

According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

• A)lower; higher
• B)lower; lower
• C)higher; higher
• D)higher; negative

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Definitions:

Budgets

A financial plan for a defined period, often one year, detailing projected revenues and expenses.

Responsibility Accounting

An accounting system that measures the financial performance of different business segments or managers responsible for certain business operations.

Control

The process of monitoring and regulating processes or systems to ensure they meet established standards and objectives.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.