The Catch-Up Effect Occurs When

question 29

Multiple Choice

The catch-up effect occurs when:

• A) a country is able to improve its rule of law by enforcing laws more quickly.
• B) a low-income country has higher economic growth rates than high-income countries, reducing the gap between their standards of living.
• C) a country encourages similar industries to locate close to each other geographically.
• D) diminishing returns on investments gradually lead to no returns, so investors catch up with noninvestors.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often accompanied by physical symptoms.

Extraversion/Introversion

Personality dimensions reflecting the level of comfort and energy gained from external versus internal sources.

Basic Alertness

Refers to the foundational level of wakefulness and responsiveness to one's environment.

Trait Theories

Psychological perspectives that focus on measuring, identifying, and analyzing individual differences in personality traits.