The price to attend a NBA basketball game in Chicago is $55 while the CPI in Chicago is 153. The CPI in Charlotte is 108 while the price to attend a NBA basketball game is $52
Which city offers a smaller real cost of attending a NBA basketball game?
Chicago real value [NBA(Charlotte)] = 153(52)/108 = $73.67. The real value of a game in Charlotte exceeds the real value of a game in Chicago. Chicago offers a smaller real cost of attending a game.
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Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
Identify the main reason to expect convergence in the long run
a. Low-productivity countries learning from high-productivity countries b. Rapid growth in the supply of capital in low-productivity countries c. Educational attainment rising quickly in low-productivity countries d. Economic complacency and mismanagement in high-productivity countries