The primary reason why economies with lower output per capita converge on economies with higher output per capita is higher "growth rates".

Here's a step-by-step explanation:

1. Economies with lower output per capita are typically developing or emerging economies. These economies have a lot of untapped potential and room for growth.

2. As these economies begin to develop, they often experience higher growth rates than developed economies. This is because they are starting from a lower base, so any increase in output represents a larger percentage increase.

3. This higher growth rate allows these economies to catch up, or converge, with economies that have a higher output per capita. This is known as "catch-up growth" or "convergence".

4. The key factor driving this convergence is the higher growth rate in the developing economy. This is often driven by factors such as investment in infrastructure, education, and technology, which increase productivity and output.

5. Over time, as the developing economy continues to grow at a faster rate, it will eventually catch up to the developed economy in terms of output per capita. This is the process of economic convergence.

Question

The primary reason why economies with lower output per capita converge on economies with higher output per capita is higher "growth rates".

Here's a step-by-step explanation:

1. Economies with lower output per capita are typically developing or emerging economies. These economies have a lot of untapped potential and room for growth.

2. As these economies begin to develop, they often experience higher growth rates than developed economies. This is because they are starting from a lower base, so any increase in output represents a larger percentage increase.

3. This higher growth rate allows these economies to catch up, or converge, with economies that have a higher output per capita. This is known as "catch-up growth" or "convergence".

4. The key factor driving this convergence is the higher growth rate in the developing economy. This is often driven by factors such as investment in infrastructure, education, and technology, which increase productivity and output.

5. Over time, as the developing economy continues to grow at a faster rate, it will eventually catch up to the developed economy in terms of output per capita. This is the process of economic convergence.

Knowee AI · Accepted Answer

The primary reason why economies with lower output per capita converge on economies with higher output per capita is higher "growth rates".

Here's a step-by-step explanation:

1. Economies with lower output per capita are typically developing or emerging economies. These economies have a lot of untapped potential and room for growth.

2. As these economies begin to develop, they often experience higher growth rates than developed economies. This is because they are starting from a lower base, so any increase in output represents a larger percentage increase.

3. This higher growth rate allows these economies to catch up, or converge, with economies that have a higher output per capita. This is known as "catch-up growth" or "convergence".

4. The key factor driving this convergence is the higher growth rate in the developing economy. This is often driven by factors such as investment in infrastructure, education, and technology, which increase productivity and output.

5. Over time, as the developing economy continues to grow at a faster rate, it will eventually catch up to the developed economy in terms of output per capita. This is the process of economic convergence.

The primary reason why economies with lower output per capita converge on economies with higher output per capita is higher ____ .

Question

The primary reason why economies with lower output per capita converge on economies with higher output per capita is higher ____ .

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