The basic idea behind the convergence theory is:
A) that countries starting at low levels of income will tend to grow at much faster rates than those starting with high levels of income.
B) each additional unit of capital provides larger gains when you're coming from behind.
C) also the basic idea behind the catch-up effect.
D) All of these are true.
Correct Answer:
Verified
Q105: Using the growth accounting equation, if the
Q106: The convergence theory is also known as:
A)
Q107: When a country continually adds more capital
Q108: The convergence theory predicts that:
A) even if
Q109: Countries that start with very little physical
Q111: When a country adds more capital to
Q112: Accounting that relates how growth in inputs
Q113: A phenomenon called Moore's law says:
A) computing
Q114: The input that is generally hard to
Q115: Growth accounting is seen a useful way
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