What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?
A)to increase their stock of capital
B)to increase their labor force
C)to find more efficient ways to allocate and use capital and labor
D)to ask help of the rich countries
E)none of the above

Question

Quizplus · Accepted Answer

Although increasing capital and labor are important for economic growth, finding more efficient ways to allocate and use them can lead to higher productivity and faster catch-up growth. Asking for help from rich countries may also be beneficial, but it is not necessarily a guaranteed solution and may come with conditions or unwanted consequences.

What Do You Think Would Be the Cobb-Douglas Single Best