Convergence theory suggests that gaps in national incomes
A) tend to close over time.
B) widen over time.
C) do not seem to change over time.
D) are irrelevant in global economies.

Question

Quizplus · Accepted Answer

Convergence theory suggests that countries with lower incomes will experience faster economic growth rates, leading to the eventual closing of income gaps with countries with higher incomes. This theory is supported by empirical evidence, indicating that income gaps between nations tend to close over time.

Convergence Theory Suggests That Gaps in National Incomes