The convergence theory suggests:
that poorer countries will grow faster than rich ones.
all countries eventually will experience the same rate of growth.
countries may have the same rate of growth but differing levels of income.
All of these are true.
The input that is generally hard to measure directly and consequently can be reasonably estimated with the growth accounting equation is:
physical capital.
technology.
land.
labor.
If a nation has a higher level of technology than another nation it can produce:
more with no use of human capital.
more outputs with the same level of physical capital.
less with the same amount of physical capital.
the same output with the same level of inputs.
Often, improvements in technology can:
lead to more improvements in technology.
lead to sustainable rates of growth in income for a country.
continuously increase the productivity of workers.
All of these are true.
1. that poorer countries will grow faster than rich ones.
Explanation: According to the convergence theory, in the long-term, all countries tend to have the same level of income. Therefore, poorer countries tend to grow faster than richer countries.
2. Technology
Explanation: The level of technology is subjective and it cannot be directly measured.
3. more outputs with the same level of physical capital.
Explanation: Better technology leads to higher output with the same level of physical capital.
4. All of these are true.
Explanation: Technology leads to higher productivity with the same level of resources. Also, one technological development leads to other technological developments.
The convergence theory suggests: that poorer countries will grow faster than rich ones. all countries eventually...
The idea that countries poor in capital may grow faster than countries rich in capital and eventually reach similar levels of GDP per capita is? convergence hypothesis uniform standard of living hypothesis steady-state equilbrium economic development
many rich countries already have very high levels of physical and human capital, they are able to continuously grow because they: O can continuously increase any of the components that lead to productivity growth O trade with other rich countries. Ohave higher per capita income. Ohave higher levels of real GDP growth.
Some southeastern countries in Asia are, on average, poorer than northern Asian countries ie Jepan end South Korea. But they have higher growth rates of real GDP per capita, on average, than northern countries These facts O allow us to conclude that conditional convergence is oocurring Oallow us to conclude that unconditional convergence is occurring O do not allow us to determine whether condtional convergence is ooourring because we do not know all of the other parameters that characterize southeastem...
Growth Rate South Korea Real GDP per capita Growth Rate Year 1970 1980 Growth Rate Canada Real GDP per capita $12,717 $16,731 Uganda Real GDP per capita $190 $1,886 $3,262 $182 $176 1990 $19,540 $23,156 $6,615 $10,80% 2000 Source: Organisation for Economic Cooperation and Development (OECD) The (decade-long) economic growth rate for Canada is shown in the second column. For example, from 1970 to 1980, Canada GDP grew from $12,717 to $16,731, an increase of Sie 512717 1711-512.717 32 Use...
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