Explain the meaning of the word "convergence" in the context of economic growth and standards of living
What will be an ideal response?
Convergence is a term that describes a prediction of the economic growth model. The prediction states that the profitability of using additional capital or better technology is generally greater in developing countries than in a high-income country. This means that poorer countries ought to grow more rapidly than rich countries and as a result, they should eventually catch up to the richer countries. This phenomenon is also called catch-up.
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The "store of value" function of money means it is the:
a. Asset individuals get for goods and services and then use later to purchase other goods and services. b. Barter value of a product for which a nation has a comparative advantage. c. The unit in terms of which people write contracts. d. Asset people can use to accumulate wealth. e. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services.
In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.