According to Modern Growth Theory,convergence in the Level of Wealth

question 8

Multiple Choice

According to modern growth theory,convergence in the level of wealth across countries depends mainly on

• A) the acquisition of physical capital.
• B) access to technology.
• C) institutions.
• D) natural resource availability.
• E) skilled labor.

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Definitions:

Resource Markets

Markets where productive inputs, such as labor, natural resources, and capital, are bought and sold.

Productivities

The levels of output or efficiency achieved from a set amount of inputs in production or work processes.

Profit-Maximizing

The process where a firm adjusts its production to achieve the highest possible profit given its constraints.

Labor (L)

A measure of the work done by human beings in the production process, considered a factor of production in economics.