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.