If France's Per Capita GDP Is $5,000 in 1950 and Portugal's

question 51

Multiple Choice

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500, but Portugal is growing faster, the expectation that sometime in the future Portugal's per capita GDP will equal that of France is called economic:

• A) growth.
• B) divergence.
• C) convergence.
• D) dynamics.
• E) justice.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Non-controlling Interest Share

The portion of equity interest in a subsidiary not owned by the parent company, reflecting the minority shareholders' stake in the consolidated entity.

Profit for the Period

The net income earned by a company over a specific period, reflecting the company's profitability.

Non-controlling Interest Proportion

The share of equity interest in a subsidiary not owned by the parent company, expressed as a percentage of total equity.