According to convergence theory, countries that start out poor should initially grow:
A. faster than ones that start out rich, and will eventually surpass their level of income.
B. faster than ones that start out rich, but will eventually slow to the same growth rate.
C. slower than ones that start out rich, but will eventually grow to the same growth rate.
D. slower than ones that start out rich, and therefore will never reach a similar growth rate.
Answer: B
You might also like to view...
The ability to produce a product at a lower resource cost than another nation can produce the same product is called comparative advantage
Indicate whether the statement is true or false
Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75. Is this likely to be a successful price discriminating strategy?
A) No, because there are many different brands of Blu-ray players and consumers will shop around. B) Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers. C) Yes, firms price discriminate to maximize profits. D) No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
All increases in the level of human capital take place in schools
a. True b. False Indicate whether the statement is true or false
The U.S. represents less than 5% of the world's population, but produces a share of the world's output almost equal to
A. 50%. B. 5%. C. 25%. D. 10%.