Catch-Up Growth Can Be Differentiated from Cutting-Edge Growth as Follows

question 121

Multiple Choice

Catch-up growth can be differentiated from cutting-edge growth as follows:

• A) Catch-up growth leads to convergence while cutting-edge growth does not.
• B) Catch-up growth comes primarily from capital accumulation while cutting-edge growth comes from technological development.
• C) Poorer countries with low levels of capital stock will always display catch-up growth.
• D) None of these answers is correct.

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Definitions:

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.