Poor Countries Have

question 100

Multiple Choice

Poor countries have

• A)the same saving rates as rich countries.
• B)lower saving rates than rich countries.
• C)frequent current account surpluses.
• D)negative saving rates.
• E)the same saving rates as rich countries, but a smaller volume of savings.

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Definitions:

Consumer

A person or collective who buys products or services for their own consumption.

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Total Utility

The total satisfaction received by a consumer from consuming a particular quantity of goods or services.

Nth Unit

A term referring to the last or latest unit produced or consumed, often used in economics to analyze marginal costs or benefits.