Developing Countries Can Achieve Higher Productivity Per Unit of Capital

question 257

Multiple Choice

Developing countries can achieve higher productivity per unit of capital because they can use technologies developed by other countries. This is known as the

• A) increasing returns to capital effect.
• B) copycat effect.
• C) catch-up effect.
• D) productivity effect.

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Definitions:

Insolvent

A financial state in which a person or entity cannot meet their debt obligations as they come due.

UCC

Abbreviated as UCC, it represents a detailed collection of regulations that oversee all commercial activities within the United States.

Reclaim Goods

The right of a seller under the Uniform Commercial Code to demand the return of delivered goods from a buyer under certain circumstances, such as insolvency.

Consequential Damage

Losses that occur as a secondary result of a direct loss or damage.