Initially Country a Has a Greater GDP Per Capita Than

question 210

Multiple Choice

Initially Country A has a greater GDP per capita than Country B,but the growth rate in Country A is only 1 percent,while it is 2 percent in Country B.If these growth rates continue forever,which of the following is correct?

• A) Country A will always have a higher GDP per capita than Country B.
• B) Country B will not be able to sustain such a high growth rate.
• C) The GDP per capita in Country B will eventually catch up to, but not overtake, that of Country A.
• D) The GDP per capita in Country B will eventually overtake that of Country A.

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Definitions:

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