Practice question · Match the pairs
Match each growth concept to its meaning.
- Convergence
- Divergence
- TFP
- Extractive institutions
- Systems concentrating wealth in a few hands
- The gap between rich and poor countries widening
- Productivity not explained by capital or labour alone
- Poorer countries growing faster and catching up
Hints
- Separate the process from the conditions it depends on.
- One term qualifies the claim by restricting it to similar countries.
Show the answer
- Convergence → Poorer countries growing faster and catching up
- Divergence → The gap between rich and poor countries widening
- TFP → Productivity not explained by capital or labour alone
- Extractive institutions → Systems concentrating wealth in a few hands
Why
Four concepts that frame the biggest question in economics, why some nations are rich and others poor.
Practise Growth and Convergence
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