Other things equal, relatively poor countries tend to grow
a. slower than relatively rich countries; this is called the poverty trap.
b. slower than relatively rich countries; this is called the fall-behind effect.
c. faster than relatively rich countries; this is called the catch-up effect.
d. faster than relatively rich countries; this is called the constant-returns-to-scale effect.
c
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While the classicists believed that both velocity and output are stable, Keynesians believe
Buying a product in one market and reselling it in another market at a higher price is referred to as
A) arbitrage. B) purchasing power parity. C) crowding in. D) barter.
Explain how the Federal Government's attempts to control inflation can affect our current account balance
When the price elasticity of demand is large, then
a. the product is more likely to be a necessity. b. the responsiveness of quantity demanded to a change in price is small. c. the percentage change in price divided by the percentage change in quantity demanded is large. d. the responsiveness of quantity demanded to a change in price is large.