-Refer to the Above Table

question 249

Multiple Choice

-Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

• A) B is 8 times larger, or $175,000 larger on a real per capita basis.
• B) B is 12 times larger, or $230,000 larger on a real per capita basis.
• C) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.
• D) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.

---

Definitions:

Merger

A strategic business action where two entities consolidate their assets, operations, and management with the aim of fostering growth or competitive advantage.

Shareholder Rights Plan

A defensive strategy used by corporations to deter hostile takeovers by issuing new shares to existing shareholders, making a takeover more expensive.

Hostile Takeover

An acquisition attempt by a company or investor to obtain control of another company against the wishes of the target company's management and board of directors.

Takeover Bid

An offer made to acquire a controlling stake or all of a company's shares, either friendly or hostile.