The basic idea behind the convergence theory is:

Question

Quizplus · Accepted Answer

All of these statements are true and are part of the basic idea of the convergence theory. The theory states that countries with lower levels of income and capital will tend to grow at faster rates than those with higher levels. This is due to the fact that additional units of capital provide larger gains when a country is coming from behind. This is also known as the catch-up effect, where poorer countries tend to converge towards the income levels of richer countries over time. Therefore, all of the statements in the answer options are correct and contribute to the convergence theory.

The Basic Idea Behind the Convergence Theory Is