Conditional Convergence Suggests That Poorer Countries

question 168

Multiple Choice

Conditional convergence suggests that poorer countries:

• A) are still catching up to richer countries.
• B) have GDPs that may not catch up to those of richer countries without changes in education and infrastructure.
• C) have growth rates that are dependent on their ties to a richer country.
• D) have growth rates that are dependent on their birth rates.

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Definitions:

General Sales Tax

A tax imposed on sales transactions, usually calculated as a percentage of the selling price of goods and services.

Ability-to-pay Philosophy

A principle of taxation that argues taxes should be levied according to a taxpayer's capacity to pay, focusing on fairness in the distribution of tax burdens.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount or income of the taxpayer increases.

Residential Property

Property designated for living or dwelling for individuals or families.