You learned that convergence is a pattern in which economies with low per capita income grows faster than economies with high per capita incomes. In this context, there are arguments pro and against convergence. Based on the figure below, choose the correct answer for the blanks: Technology 3 Technology 2 Output per Capita G₁ G₂ G₁ R S T V W Technology 1 C₁ C₂ C₂ Capital (physical and human) Capital deepening and new technology text only. One of the arguments that favors convergence is based on the idea of the diminishing marginal returns of capital deepening that is illustrated when the economy moved from point R to point U to point W However, the argument that convergence is neither inevitable nor likely argues that the development of new technologies can sidestep the diminishing marginal returns of capital deepening, so that the economy could move from point U to W from point S to point T , and then

You learned that convergence is a pattern in which economies with low per capita income grows faster than economies with high per capita incomes. In this context, there are arguments pro and against convergence. Based on the figure below, choose the correct answer for the blanks: Technology 3 Technology 2 Output per Capita G₁ G₂ G₁ R S T V W Technology 1 C₁ C₂ C₂ Capital (physical and human) Capital deepening and new technology text only. One of the arguments that favors convergence is based on the idea of the diminishing marginal returns of capital deepening that is illustrated when the economy moved from point R to point U to point W However, the argument that convergence is neither inevitable nor likely argues that the development of new technologies can sidestep the diminishing marginal returns of capital deepening, so that the economy could move from point U to W from point S to point T , and then

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

See similar textbooks

Similar questions

What are the advantages of backwardness for economic growth?
In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?
An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?
List the areas where government policy can help economic growth.