What is the tendency called for poorer countries to grow faster than richer countries with the same steady-state levels of output?
A) the diminishing rate of return
B) the marginal law of supply
C) conditional convergence
D) growth capitalization

Question

Quizplus · Accepted Answer

Conditional convergence is the tendency for poorer countries to grow faster than richer countries with the same steady-state levels of output. This is because poorer countries have more opportunities for growth and catch-up with richer countries through technological transfer, foreign direct investment, and government policies that encourage growth. The other options, such as diminishing rate of return, marginal law of supply, and growth capitalization, are not relevant to this phenomenon.

What Is the Tendency Called for Poorer Countries to Grow