According to the Convergence Theory

question 1

Multiple Choice

According to the convergence theory,

• A)less-developed countries should grow faster than advanced ones because of the ability to copy new technology
• B)the growth rates of all countries converge because in the long run, all resources are alike
• C)human capital differences can never be made up
• D)GDP and productivity growth rates should converge over time
• E)the impact of basic and applied research should converge over time

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Definitions:

Cumulative Number

A total that increases over time by adding successive amounts or quantities, often used in data collection and analysis.

Labor Per Unit

Refers to the amount of labor required to produce a single unit of a product, indicating efficiency and productivity levels.

Long-run Average Cost Curve

A curve that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Monthly Production

The total quantity of goods or services produced by a company, industry, or economy over the span of a month.