How does the concept of catch-up growth explain the diminishing income gap between the developing economies and developed economies?
What will be an ideal response?
Catch-up growth refers to the process whereby relatively poorer nations increase their incomes by taking advantage of knowledge and technologies already invented in other, technologically more advanced countries. Developing economies undergoing catch-up growth do so mostly by benefiting from technologies that are already available with developed economies. Along with technology transfers, if these economies increase their savings rates, efficiency units of labor, and efficiency of production, it makes it possible for them to catch-up with the incomes of the developed economies. Many economies have been doing so, and overtime this has caused the income gap between the developing economies and developed economies to diminish.
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 5 percent, an initial deposit of $10,000 will lead to a total increase in deposits of
A) $500. B) $10,000. C) $50,000. D) $200,000.
The United States has had:
A. high relative mobility in the last century, and lower absolute mobility. B. low absolute mobility in the last century, but higher relative mobility. C. high absolute mobility in the last century, and lower relative mobility. D. low relative mobility in the last century, and even lower absolute mobility.
All of the following, except one, can be a barrier to entry into an oligopoly market. Which is the exception?
a. heavy advertising by existing firms b. zoning regulations c. excess production capacity among existing firms d. tariffs and quotas e. a small minimum efficient scale
The economic way of thinking will help you
A. make decisions in financing your home. B. make better decisions concerning your education. C. analyze solutions to economic problems. D. all of these