If the Production Functions of Rich and Poor Nations Are

question 16

Multiple Choice

If the production functions of rich and poor nations are NOT identical, resulting in lower marginal products of capital for poor nations, then:

• A) capital markets are basically dysfunctional.
• B) it must mean the labor productivity for poor nations is higher.
• C) capital markets cannot be relied on to bring about convergence.
• D) capital markets may be functioning efficiently and correctly after all.

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Definitions:

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, promote efficient operations, and ensure compliance with laws and regulations.

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

Inventory Records

Documentation that tracks the quantities, locations, and statuses of products a company has in stock.