1.Which one of the following statements is generally correct? a. Less developed
ID: 1125229 • Letter: 1
Question
1.Which one of the following statements is generally correct?
a. Less developed economies tend to have good institutions that promote growth
b. Less developed economies tend to attract more outside investment than highly developed economies
c. Highly developed economies tend to grow at a slower rate than transition economies
d. Transition economies have a higher average income than highly developed economies
e. The United States has the highest GDP per Capita in the world
2.Which of the following countries is the BEST example of a transition economy?
a. Italy
b. Australia
c. Afghanistan
d. Liberia
e. Poland
3.Which of the following events is MOST likely to increase the demand for dollars in the Foreign Exchange Market?
a. If more European invested in American stocks because Europe is struggling
b. If foreigners expected the dollar to depreciate because the U.S. economy is struggling
c. If more Americans traveled abroad because more of them reached retirement
d. If Japan raised interest rates on its government bonds
e. If the Fed lowered the Required Reserve Ratio
Explanation / Answer
Answer : The correct statement is e. The United States has the highest GDP per Capita in the world. Because in this country population is highest and there has many income opportunities with high income level.
2. The BEST example of a transition economy is e. Poland. Transition economy change the centrally planned market to demand market.
3. c. If more Americans traveled abroad because more of them reached retirement, it increase the demand for dollars in the foreign exchange market.
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