If the Marginal Product of Capital Were Increasing in All

question 5

Multiple Choice

If the marginal product of capital were increasing in all nations

• A) nations would experience a rapid convergence to a steady state in which GDP per capita would be the same across countries
• B) poverty traps would be avoided
• C) nations with large capital stocks would in vest more than nations with small capital stocks
• D) technology would spill over rapidly from rich nations into poor nations
• E) the marginal product of labor would also be increasing in all nations

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Definitions:

Catastrophic Health Insurance

A type of health insurance designed to provide coverage for extremely severe or unforeseen medical events, often with high deductibles and lower premiums.

Medical Savings Accounts

Special savings accounts for medical expenses that provide tax advantages for individuals.

Tax Treatment

Tax treatment describes the specific ways in which particular financial transactions or investments are taxed, including deductions, exemptions, and rates applied.

Medical Savings Accounts

Special savings accounts designed to help individuals save for future medical expenses, offering tax advantages to encourage their use.