Compared to high-income countries, low-income countries might have an advantage in achieving higher rates of worker productivity and economic growth in the future. This is because:
a. the economic growth rate begins to diminish as capital deepening increases in high-income countries.
b. the invention of new technology is subject to diminishing marginal returns in high-income countries.
c. the cost of adaption to new technology is lower in low-income countries than in high-income countries.
d. the marginal cost of production decreases more in low-income countries than in high-income countries.
a
You might also like to view...
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause
A) income to rise, interest rates to fall, and the domestic currency to depreciate. B) income to fall, interest rates to rise, and the domestic currency to appreciate. C) income to rise, interest rates to remain unchanged, and the domestic currency to appreciate. D) income to rise, interest rates to remain unchanged, and the domestic currency to depreciate.