Which of the following statements accurately describes catch-up growth? A. In one generation, Zimbabwe will be one of the middle-income countries since Zimbabwe’s GDP per person fell by 27% in the last couple of decades.
B. In one generation, Zimbabwe will be the world’s richest country since Zimbabwe’s GDP per person grew by 9% in the last couple of decades.
C. In one generation, China will be one of the richest countries in the world if China’s GDP per person continues to grow by 9% per year.
D. In one generation, even if China’s GDP per person declines by 9% per year, China will remain one of the richest countries in the world.
The correct answer is C.
Catch-up growth refers to the phenomenon where countries with lower income levels grow at a faster rate than wealthier countries, allowing them to “catch up” economically over time. If China’s GDP per person continues to grow by 9% per year, it could potentially elevate its economic status significantly, making it one of the richest countries in the world. The other options either imply unrealistic projections or do not align with the principles of catch-up growth. Keep asking questions if you need further clarification!