Countries with Different Initial Levels of Per Capita Income May

question 14

Multiple Choice

Countries with different initial levels of per capita income may gravitate to a similar level of per capita income.Economists call this phenomenon ________.

• A)convergence
• B)simulation
• C)gravitation
• D)depreciation

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Definitions:

Beneficiary

An individual or entity entitled to receive benefits or assets under a legal instrument, such as a will or insurance policy.

Bilateral Contract

A contract in which both parties make promises.

Consideration

In contract law, the mutual promise to exchange benefits and detriments between parties.

Premiums

The amount paid for insurance coverage or the payment above the nominal value of a security when issued.