Which of the Following Statements Is True Regarding the Basic

question 70

Multiple Choice

Which of the following statements is true regarding the basic idea behind convergence theory?

• A) Countries starting with low levels of income will tend to grow at much faster rates than those starting with high levels of income.
• B) Each additional unit of capital provides larger gains to countries with less economic development.
• C) It is also the same basic idea behind the catch-up effect.
• D) All of these are true.

---

Definitions:

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.

Attractive Investment

An investment that is appealing due to its potential for favorable returns or its alignment with investment criteria.

Simple Rate

A basic method for calculating interest or return, often expressed as a percentage over a period of time.

Cash Operating

Cash operating activities involve the cash inflows and outflows directly related to the core business operations, such as revenue from sales and payments to suppliers.