If the Productivity of Capital in Low-Income Nations Is Substantially

question 59

Multiple Choice

If the productivity of capital in low-income nations is substantially lower than productivity in high-income nations, then:

• A) output per worker will never catch up to the rich nations, even with access to capital markets.
• B) productivity of capital can be improved by better training of workers and more foreign investment.
• C) output per worker will grow more slowly, but at some point there will be convergence.
• D) the low-income nations will lose their ability to borrow in international markets.

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