Country a Has Real GDP Per Person of 100,000 While

question 107

Multiple Choice

Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000.All else constant,country A will eventually have a higher standard of living than country B if

• A)the level of saving per person is 10,000 in country A and 10,000 in country B.
• B)the level of saving per person is 12,000 in country A and 15,000 in country B.
• C)Both of the above are correct.
• D)None of the above are correct.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the market, determined by supply and demand dynamics.

EBIT

EBIT stands for Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Debt

Money owed by one party, the borrower, to a second party, the lender; it is often represented by loans or bonds.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which funds its overall operations and growth.