i) Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean and state the four main factors of labour productivity.

(ii) The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in studies that include many diverse countries, we do not observe the catch-up-effect unless we consider other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a
poor country’s ability to catch up with the rich ones.

(iii) Why are property rights important for the growth of a nation's standard of living.

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Productivity is the quantity of goods and services produced from ... View the full answer