One making an argument against economic convergence would say that a) poor countries grow at a significantly higher rate than rich countries. b) there are greater opportunities for capital deepening for low-income countries, who start out at much lower levels of human capital and physical capital. c) rich countries are constantly developing new technologies that offset an effects of diminishing marginal return. d) rich countries have diminishing marginal returns in investment relative to a poor country.
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a) This statement actually supports the idea of economic convergence, as it suggests that poor countries are catching up to rich countries in terms of economic growth. Show more…
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