Figure 10-4 -Which of the Following Is Not a Real World Factual

question 11

Multiple Choice

Figure 10-4
-Which of the following is not a real world factual conflict with the neoclassical growth model?

• A) Income per capita varies greatly across countries.
• B) Poor countries do not have a higher rate of return on capital.
• C) Immigrant labor from poor countries experiences very small increases in income when it moves to rich countries.
• D) poor countries' income levels have not converged to the income levels of rich countries.

---

Definitions:

Polynomial Model

A type of regression analysis where the relationship between the independent variable and the dependent variable is modeled as an nth degree polynomial.

Predictor Variable

A variable used in-statistical models to predict or estimate the value of an outcome variable.

P Predictor

A variable in a statistical model that is used to predict the outcome of a dependent variable based on its relationship with the predictor.

Regression Equation

An equation in mathematics employed to forecast the value of a dependent variable using one or more independent variables.