Economic growth rates in follower countries

Question

Quizplus · Accepted Answer

Follower countries tend to benefit from adopting the new technologies that leader countries have already developed, which can be done at a lower cost. This can lead to higher economic growth rates compared to leader countries. However, this does not necessarily mean that follower countries will reach the same levels of real GDP per capita as leader countries, as there may be other factors at play such as institutional quality, infrastructure, and education levels. The statement in choice A is incorrect as the size of the labor force is not the main determinant of economic growth rates. The statement in choice D is true on average, but not in all cases.

Economic Growth Rates in Follower Countries