Jamaica has far less capital than Singapore. Based on this, the Classical growth model would predict that as each accumulates more capital Jamaica would grow:

Question

Quizplus · Accepted Answer

The Classical growth model posits that countries with less capital initially will grow more rapidly than those with more capital, as returns to capital are higher in less developed economies. This is due to the law of diminishing returns, which suggests that as more capital is accumulated, the additional output generated from an extra unit of capital decreases.

Jamaica Has Far Less Capital Than Singapore