When a lower-income economy's GDP is able to "catch up" with a higher-income economy's GDP, this behavior is related to an important concept in the study of economic:
A) growth.
B) divergence.
C) convergence.
D) fluctuations.
E) asset markets.

Question

Quizplus · Accepted Answer

The concept in question is convergence, which refers to the tendency for lower-income economies to grow faster than higher-income economies and eventually "catch up" to them in terms of GDP per capita. This is a key topic in the study of economic growth.

When a Lower-Income Economy's GDP Is Able to "Catch Up