Other Things Equal, How Do Relatively Poor Countries Tend to Grow

question 86

Multiple Choice

Other things equal, how do relatively poor countries tend to grow?

• A) They grow slower than relatively rich countries; this is called the poverty trap effect.
• B) They grow slower than relatively rich countries; this is called the savings effect.
• C) They grow faster than relatively rich countries; this is called the catch-up effect.
• D) They grow faster than relatively rich countries; this is called the diluting capital effect.

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Definitions:

Bonded Employees

Employees who have been guaranteed by a bonding company against theft or misconduct, offering protection to the employer.

Cash Over and Short

An account that records any discrepancies between physical cash and the recorded amount, used to track overages and shortages.

Petty Cash Transactions

Small amounts of cash kept on hand for making immediate payments for miscellaneous small expenses.

Computerized Accounting System

Software used to manage and record accounting transactions, improving efficiency and accuracy.