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:

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who is known for his research on the stress response and for introducing the concept of stress in medical research.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological and psychological changes that prepare the body to act.

Alarm Phase

The initial stage of the body's response to stress, activating the sympathetic nervous system and the fight-or-flight response.

German-American

A person of German descent who is a citizen of the United States, often contributing to various aspects of American culture and society.