The Logic Behind the Catch-Up Effect Is That

question 106

Multiple Choice

The logic behind the catch-up effect is that

• 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)None of the above is correct.

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Definitions:

Innovation

The act of transforming a concept or innovation into a product or service that generates value or that consumers are willing to purchase.

Imitation

The action of using someone or something as a model and duplicating their behaviors, strategies, or products.

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or change.

Market Share

The share of a market dominated by a specific company or product.