Which of the following statements is not correct?
A)The catch-up effect is based on the assumption of diminishing returns to capital.
B)Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies.
C)Malthus argued that charity and government aid was an effective way to reduce poverty.
D)Peace and justice are keys to growth.

Question

Quizplus · Accepted Answer

Malthus did not believe that charity and government aid were effective ways to reduce poverty. He believed that population growth would outpace increases in productivity, leading to perpetual poverty and misery.

Which of the Following Statements Is Not Correct