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 GDP per capita grow at a faster rate than wealthier countries, allowing them to “catch up” economically over time. Statement C illustrates this concept as it suggests that if China continues to grow its GDP per person by 9% per year, it could become one of the richest countries in the world. This reflects the idea of sustained economic growth leading to improved standards of living and wealth accumulation.
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