The country Panjim has been growing at the rate of 8 percent annually following

Question

The country Panjim has been growing at the rate of 8 percent annually following a series of economic growth reforms. Adelphia, a neighboring country, is also growing rapidly, but at a rate that is slightly lower than Panjim's, Elaine Mack and Prisca Baresi, who live in Adelphia, are discussing whether Adelphia's economy will surpass Panjim soon. Elaine is of the opinion that the high level of sales of capital goods indicates that growth in Adelphia will only increase further. Prisca, however reminds Elaine that the working population in Adelphia is shrinking, which will reduce its growth prospects.

Which of the following, if true, will weaken Prisca's view that Adelphia does not have good growth prospects?

A. Adelphia is highly dependent on the import of oil and food grains.

B. Although inequality in Adelphia has fallen, the number of people under the poverty line has not reduced significantly.

C. Nominal wages in Adelphia increase by a smaller propotion than the increase in prices.

D. the number of highly-skilled workers migrating from Adelphia to foreign countries has fallen.

E. Compared to Adelphia, Panjim is better endowed with natural resources.

Explanation / Answer

D. the number of highly-skilled workers migrating from Adelphia to foreign countries has fallen.

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