If all countries are going to converge at the same level of real gross domestic product (GDP)per capita as predicted by the Solow growth model,then they must all
A) have identical production functions.
B) have the same number of people in the population.
C) have the same size of labor force.
D) have the same level of real GDP.
E) end up with a marginal product of zero.

Question

Quizplus · Accepted Answer

The Solow growth model assumes that all countries have the same production function, which means that they produce goods using the same technological knowledge, physical capital, labor, and natural resources. Therefore, for all countries to converge to the same level of real GDP per capita, they would need to have identical production functions. The other choices do not necessarily have to be the same for countries to converge. For example, countries with different population sizes can still converge if they have the same production function and level of technological knowledge.

If All Countries Are Going to Converge at the Same