Question

Today s poor countries are a. destined to always be poor, because they started the economic growth process too late. b. not always destined to be poor, as they can develop the appropriate institutions to catch up to wealthier countries. c. not always destined to be poor, since they can borrow money from wealthier countries. d. destined to always be poor, because they have few resources.

Answer 1

Answer:

b. not always destined to be poor, as they can develop the appropriate institutions to catch up to wealthier countries

Explanation:

Poor countries are not always destined to be poor. Poor countries are poor because : 1. they lack good infrastructures e.g. roads, electricity

2. They have poor quality of human capital

3. Of high level of corruption

If poor countries can

1. develop good infrastructures

2. increase the quality of human capital through education and training

3. fight corruption, it would be possible for poor countries to catch up with wealthier countries.

The solow growth model predicts that technological advancement would make it possible for poor countries to catch up with wealthier countries.

I hope my answer helps you