Which of the Following Statements About Conditional Convergence Is Not

question 50

Multiple Choice

Which of the following statements about conditional convergence is not true?

• A) The evidence of convergence for the world as a whole is for conditional convergence.
• B) The gap between rich and poor countries is not narrowing.
• C) Countries are moving toward their own steady states.
• D) Cross-country growth regressions are unable to contribute much beyond the contributions of the augmented Solow growth model.
• E) Variables that affect growth include saving and population growth rates, schooling, openness to trade, and political and geographic variables.

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Definitions:

Relatively Elastic

Refers to a situation in which the demand or supply for a good or service greatly responds to changes in price.

Tax Incidence

Refers to the distribution of the economic burden of a tax between buyers and sellers in the market.

Deadweight Loss

A reduction in total welfare or economic efficiency, typically resulting from inefficiencies such as taxes or monopolies.

Mutually Beneficial Transactions

Economic exchanges where both parties gain value or benefit from the transaction.