Allowing for productivity differences between rich and poor countries results in:
A) poor countries reaching the levels of capital per worker of rich countries.
B) poor countries reaching the levels of output per worker of rich countries.
C) poor countries not reaching the levels of capital per worker of rich countries.
D) rich country capital per worker decreasing to the level of poor countries.

Question

Quizplus · Accepted Answer

Allowing for productivity differences means acknowledging that rich countries often have higher productivity, which allows them to maintain higher levels of capital per worker compared to poor countries. This productivity gap can prevent poor countries from reaching the capital per worker levels of rich countries.

Allowing for Productivity Differences Between Rich and Poor Countries Results