The catch-up effect occurs when:
A) a country is able to improve its rule of law by enforcing laws more quickly.
B) a low-income country has higher economic growth rates than high-income countries, reducing the gap between their standards of living.
C) a country encourages similar industries to locate close to each other geographically.
D) diminishing returns on investments gradually lead to no returns, so investors catch up with noninvestors.
Correct Answer:
Verified
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