How does the concept of catch-up growth explain the diminishing income gap between the developing economies and developed economies?
What will be an ideal response?
Catch-up growth refers to the process whereby relatively poorer nations increase their incomes by taking advantage of knowledge and technologies already invented in other, technologically more advanced countries. Developing economies undergoing catch-up growth do so mostly by benefiting from technologies that are already available with developed economies. Along with technology transfers, if these economies increase their savings rates, efficiency units of labor, and efficiency of production, it makes it possible for them to catch-up with the incomes of the developed economies. Many economies have been doing so, and overtime this has caused the income gap between the developing economies and developed economies to diminish.
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According to the Application, Hazlitt's argument that the broken window is NOT good for society
A) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment. B) works in the Keynesian world when the economy is operating below full employment. C) works in the classical world when the economy is operating at full employment. D) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment.
A monopsony maximizes its profit by hiring the level of employment that sets
A) labor supply equal to labor demand. B) the value of marginal product equal to the wage. C) the value of marginal product equal to the marginal cost of labor. D) the value of marginal product equal to the demand for labor.