If Real GDP in the United States Is Growing at an Annual

question 195

Multiple Choice

If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%,which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.

• A)Real GDP per capita in the United States will always be 1.9% higher than real GDP per capita in Bolivia.
• B)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
• C)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time.
• D)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion.

---

Definitions:

Skimming Pricing

A pricing strategy where a company charges a high initial price for a product and gradually lowers it over time.

Product Development

The process of bringing a new product or service to the market, from idea generation and design to commercialization.

Introduction Stage

The phase in the product life cycle where a new product is launched into the market, characterized by initial promotional efforts and low sales growth.

Marketing Objective

Specific goals set by a business when promoting its products or services to potential consumers that should be achieved within a certain timeframe.