4340EconomicsMedium
When a national has very little GDP per person?
Aan increase in capital will likely have little impact on output
Bit has the potential to grow relatively quickly due to the “catch-up-effect”
CIt must be a small nation.
Dnone of these answers
Eit is doomed to being relatively poor forever
Correct answer
B. it has the potential to grow relatively quickly due to the “catch-up-effect”
Explanation
The correct answer is it has the potential to grow relatively quickly due to the “catch-up-effect”.