The neoclassical model predicts that nations that are initially poor should have
A)slower growth rates than nations that are rich.
B)faster growth rates than nations that are rich.
C)growth rates equal to those of nations that are rich.
D)negative growth rates.

Question

Quizplus · Accepted Answer

According to the neoclassical model, nations that are initially poor have lesser access to capital and technology, which gives them an advantage in terms of faster growth rates due to the potential to converge with richer nations. This convergence happens as poorer nations adopt the technology and production methods of the richer nations, leading to faster growth rates.

The Neoclassical Model Predicts That Nations That Are Initially Poor