According to economist Robert Lucas, the reason that physical capital does not flow easily to developing countries is that in developing countries:
A) technology does not exist to use capital.
B) marginal product of capital is low.
C) human capital levels are lower.
D) population levels are lower.

Question

Quizplus · Accepted Answer

Robert Lucas argued that human capital levels are lower in developing countries, which affects the productivity and effective use of physical capital, thus hindering its flow to these regions.

According to Economist Robert Lucas, the Reason That Physical Capital