According to economic growth theory, if the spread of technology is not difficult, we would expect
A)countries with lower productivity to adopt newer technology and raise their productivity.
B)countries with high levels of income per capita to continue growing faster than countries with low incomes per capita.
C)the elimination of diminishing returns to labor.
D)an increase in the diminishing returns to capital.
E)the elimination of diminishing returns to capital.

Question

Quizplus · Accepted Answer

According to economic growth theory, if the spread of technology is not difficult, countries with lower productivity are more likely to adopt newer technology and raise their productivity. This is because they have a lower base to start from and can benefit more from the productivity gains that technology provides. In contrast, countries with higher levels of income per capita may already be closer to the technological frontier and therefore experience slower growth rates.

According to Economic Growth Theory, If the Spread of Technology