Which of the Following Best Explains the Logic Behind the Catch-Up

question 171

Multiple Choice

Which of the following best explains the logic behind the catch-up effect?

• A)Workers in countries with low incomes will work more hours than workers in countries with high incomes.
• B)The capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
• C)New capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
• D)Poor countries tend to save a higher share of their income than rich countries.

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Definitions:

Sections

Distinct parts into which something is or may be divided or allocated.

Sales Contracts

Legal agreements that outline the terms and conditions under which goods or services are sold from a seller to a buyer.

Intellectual Property

Intangible property that is the product of one’s mind and not one’s hands.

Corporate Stocks

Equity investments representing ownership in a corporation, allowing shareholders to claim on assets and earnings.