Q1. Which of the following best characterizes the relationship between investment capital and economic output in emerging markets? A) An increase in investment capital will result in a high level of output. B) Investment capital is unrelated to the level of output in emerging countries due to structural inefficiencies. C) An increase in investment capital will result in a low level of output.
Q2. Which of the following best characterizes the relationship between per capita income and currency values in emerging markets? Their currencies are currently: A) below levels predicted by Purchasing Power Parity and will fall in value as per capita income increases. B) above levels predicted by Purchasing Power Parity and will rise in value as per capita income increases. C) below levels predicted by Purchasing Power Parity and will rise in value as per capita income increases.
Q3. During the period 1960 to 2000, which of the following countries best illustrated the fact that as developing countries mature, their productivity slows? A) Russia. B) Japan. C) Brazil.
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