Why Do Very Small Differences in Annual Growth Rates Amount

question 96

Multiple Choice

Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?

• A) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain
• B) because the annual growth rate is compounded over time
• C) because the slower-growing countries save too much
• D) because the slower-growing countries don't export enough

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Definitions:

Galvanic Skin Response

A physiological response that results in changes in the electrical conductance of the skin, often used as an indicator of emotional arousal.

Electroencephalogram

A test or record of brain activity produced by electroencephalography.

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Pertaining to actions or reactions of persons or organisms in response to external or internal stimuli.

Physiological

Related to the functions and processes of living organisms and their parts.