The growth rates of economies tend to converge because ________ is easier when capital per worker is low and because of?
Correct answer: D. capital-deepening, catch-up in technology
- A. capital-widening technical innovation
- B. capital-widening Catch-up in technology
- C. capital-deepening technical innovation
- D. capital-deepening, catch-up in technology
Explanation
Capital deepening is easier when capital per worker is low because the initial returns to added capital are relatively high. Poorer economies can also grow faster by catching up technologically, giving option d both required elements.
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