Other Things Equal,relatively Poor Countries Tend to Grow

question 13

Multiple Choice

Other things equal,relatively poor countries tend to grow

• A)slower than relatively rich countries;this is called the poverty trap.
• B)slower than relatively rich countries;this is called the fall-behind effect.
• C)faster than relatively rich countries;this is called the catch-up effect.
• D)faster than relatively rich countries;this is called the constant-returns-to-scale effect.

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Definitions:

Periodic Inventory System

An accounting method that records inventory purchase or sale transactions at the end of an accounting period.

Gross Method

An accounting method for recording purchases at the gross invoice amount before deducting any cash discounts for early payment.

Credit Terms

Conditions under which credit will be extended to a borrower, including the amount of credit, interest rate, and repayment schedule.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost of transporting the goods from the shipping point.