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8. True/False. For each of the following decide whether the statement is true, false, or uncertain...

8. True/False. For each of the following decide whether the statement is true, false, or uncertain and explain why. Your explanation is the important part of the answer. a. The growth rate of a product is the sum of the individual growth rates. b. Differences in the quality of institutions are the sole cause of differences in per capita income levels across countries. (Hint: The article, “What Makes Countries Rich or Poor? A Review of Why Nations Fail” by Jared Diamond, assigned for class on Thursday January 31, will be helpful.)

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a) False Reason: It is the average of the sum of individual growth rates b) False Reason: Quality is not considered while calculating per capita income levels. This is the most important drawback of calculating per capita income and comparing countries based on that measure

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