Which Statement Best Explains the Logic Behind the Catch-Up Effect

question 30

Multiple Choice

Which statement 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:

Facet

A small, smooth, flat surface on a bone, often where two bones articulate.

Bone Marking

Features on the surface of bones, such as ridges and depressions, that serve as sites for attachment of muscles, tendons, and ligaments.

Rough Projection

Refers to a bony projection with a rough surface, often serving as a site for muscle attachment.

Trochanter

A bony prominence on the femur near its joint with the hip bone, serving as an attachment for muscles or ligaments.