Conditional Convergence Refers to the Tendency For

question 28

Multiple Choice

Conditional convergence refers to the tendency for:

• A) poorer countries to grow faster than richer countries,but only if they receive sufficient foreign investment.
• B) richer countries to grow faster than poorer countries given similar steady-state capital stocks,so the poor countries never catch up with the rich countries.
• C) poorer countries to grow faster than richer countries given similar steady-state capital stocks,but the poor countries will never catch up with the rich countries.
• D) countries with similar steady-state levels of output to grow faster when they're poor than when they're rich until their per capita GDP levels converge.

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Definitions:

Scatterplot

A scatterplot is a type of graph used in statistics to display values for two variables for a set of data, showing how much one variable is affected by another.

R Squared

A quantitative metric indicating how much of the change in a dependent variable can be explained by independent variables in a regression framework.

Regression

A statistical method used to study the relationship between a dependent variable and one or more independent variables, assessing patterns of influence.

Kilowatt-Hours

A measurement of energy that equals the consumption of 1000 watts over the duration of one hour.