If all countries are going to converge at the same level of real gross domestic product (GDP) per capita as predicted by the Solow growth model,then:
A) they must all have identical production functions.
B) they must all have the same number of people in the population.
C) they must all have the same size of labor force.
D) they must all have the same level of real GDP.
E) they must all end up with a marginal product of zero.

Question

Quizplus · Accepted Answer

The Solow growth model predicts that countries with lower levels of real GDP per capita will experience faster economic growth rates until they eventually converge to the same level as higher income countries, assuming they have similar production functions. This means that they do not need to have the same population, labor force, or real GDP; they simply need to have similar production functions. Therefore, choice A) is the best answer.

If All Countries Are Going to Converge at the Same