In terms of the catch-up line for advanced countries from 1960 to 2005, New Zealand is an example of a country that
A)was richer and therefore grew less rapidly.
B)was poorer and therefore grew less rapidly.
C)was richer and therefore grew more rapidly.
D)was poorer and therefore grew more rapidly.
E)None of these

Question

Quizplus · Accepted Answer

New Zealand was relatively richer in 1960, and according to the catch-up theory, richer countries tend to grow more slowly than poorer countries because they are closer to the technological frontier and have less scope for rapid improvements in productivity.

In Terms of the Catch-Up Line for Advanced Countries from 1960