Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries?
A) The growth rate of real GDP per capita in Alpha and Beta will be the same.
B) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.
C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta.
D) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
D
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If the price elasticity of demand for good A is -1, then a 1% increase in
A) consumer income will result in a 1% decrease in the demand for good A. B) consumer income will result in a 1% increase in the demand for good A. C) the market price of good A will result in a 1% increase in the quantity demanded of good A. D) the market price of good A will result in a 1% decrease in the quantity demanded of good A.
Using the income approach, the largest component in the calculation of GDP is:
a. net interest. b. rental income. c. profits. d. compensation of employees.