Question

Economists have found that the amount of corruption in a country's government is correlated to the gross domestic product (GDP) per capita of that country. This can be modeled by y=1400(1.05)^x where x is the corruption score and y is GDP per capita in dollars. Corruption scores range from 0 to 100 with 0 being highly corrupt and 100 being least corrupt.

What does the y-intercept of this function represent?

A. the corruption score needed for a GDP per capita of zero
B. the increase in GDP per capita for every increase of one in corruption score
C. the GDP per capita of a country with a corruption score of zero
D. the GDP per capita necessary to decrease the corruption score by one

Answer 1

Economists found that amount of corruption in a country is correlated to the Gross domestic products of the country.

Whenever there is high corruption in a country it leads to great negative impacts on the economic growth of that country.

The equation represents the the corruption score for every dollar per capita rise.

The slope of the equation will represent the GDP per capita of a country with corruption score of zero.

The correct answer is C.

C. The GDP per capita of a country with a corruption score of zero.