Which of the following statements correctly differentiates catching-up growth from cutting-edge growth?
A. Poorer countries with low levels of capital stock will always display catching-up growth while rich countries will not.
B. Cutting-edge growth leads to convergence while catching-up growth does not.
C. Catching-up growth comes primarily from capital accumulation while cutting-edge growth comes from technological development.
D. Catching-up growth can go on indefinitely while cutting-edge growth cannot
Ans: C. Catching-up growth comes primarily from capital accumulation while cutting-edge growth comes from technological development.
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The above figure shows the apartment rental market in Bigtown. If there is a shortage of 200,000 apartments in the Bigtown rental market, it might be because the Bigtown Housing Authority has imposed a rent
A) ceiling of $750.00 monthly. B) ceiling of $500.00 monthly. C) floor of $750.00 monthly. D) floor of $500.00 monthly.
Next year's expected price of oil is $88 per barrel and the interest rate is 10 percent per year. According to the Hotelling Principle the price of oil this year is
A) $80 per barrel. B) $88 per barrel. C) $96 per barrel. D) None of the above answer is correct.
If the market price faced by a perfectly competitive firm increases, in the short run how does the firm respond?
What will be an ideal response?
A person is calculating his permanent income by adaptive expectations. Last year's permanent income was 38,000, this year's actual income is 44,000, and j = 0.25. This year his permanent income is
A) 39,500. B) 42,500. C) 59,000. D) 20,500