Asked by Krystal Bandith on Jun 03, 2024
Verified
Which of the following statements accurately describes catch-up growth?
A) In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year.
B) In one generation, Zimbabwe will be one of middle-income countries, since Zimbabwe's per person GDP fell by 27% in the last couple of decades.
C) In one generation, even if China's GDP per person will decline 9% per year, China will remain one of richest countries in the world.
D) In one generation, Zimbabwe will be the world richest country, since Zimbabwe's per person GDP grew 9% in the last couple of decades.
Catch-Up Growth
The process by which a country or economy grows rapidly in order to close the gap with more developed economies.
GDP Per Person
A measure of a country's economic output that accounts for its population, calculated by dividing the GDP by the total population.
- Understand the concept of catch-up growth and its implications on global economic dynamics.
Verified Answer
SW
Sydni WilliamsJun 06, 2024
Final Answer :
A
Explanation :
Catch-up growth refers to the phenomenon where countries with lower income levels grow more rapidly than countries with higher income levels, thereby narrowing the income gap. Statement A implies a rapid growth rate for China, suggesting it could catch up with or surpass richer countries if it maintains a high growth rate, which aligns with the concept of catch-up growth.
Learning Objectives
- Understand the concept of catch-up growth and its implications on global economic dynamics.