Which of the following is true? a. In poor countries where there is little capital, small increases
Question:
Which of the following is true?
a. In poor countries where there is little capital, small increases in capital investment can lead to relatively large increases in productivity.
b. In rich countries, where workers already have large amounts of capital, increases in capital investment may have a very small additional effect on productivity.
c. Economists call (a) and (b) the catch-up effect.
d. All of these are true.
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