If a nation with a low level of GDP per capita converges to a richer nation, the poor nation:
A. experiences low growth rates.
B. enters into a free trade agreement with the richer nation.
C. experiences a rate of high growth such that its GDP per capita increases to that of the richer nation.
D. experiences a rate of low growth such that its GDP per capita increases to that of the richer nation.
Answer: C
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Rational ignorance helps explain why
a. legislators often trade votes on key issues to produce positive-sum games between them b. legislators usually disregard the desires of those constituencies that cannot influence their chances for reelection c. voters spend considerable time and effort to gather information to protect themselves against legislators with hidden agendas d. it is rational for legislators to ignore the wishes and desires of all of their constituents e. voters may choose to remain ignorant of issues when there are large costs associated with becoming informed
When a positive externality exists, the marginal social demand curve
a. is the same as the market supply curve b. is the same as the market demand curve c. lies below the market demand curve d. lies above the market demand curve e. lies below the market supply curve.
Changes in the size of an industry may cause supply to shift
a. True b. False Indicate whether the statement is true or false
When we look at real GDP since 1970 or so, we see that recessions are evenly spaced over the years.
a. true b. false