Which of the following comments is correct? I. China\'s exceptional growth betwe

Question

Which of the following comments is correct?

I. China's exceptional growth between 1980 and 2000 supports theconvergence hypothesis.

II. The widening gap between Bulgaria and the United Statessupports the convergence hypothesis.

III. The low growth rates of Bulgaria, Ecuador, and Nigeriacould be explained by low interest rates and high investment.

IV. Because Nigeria's growth rate increased, its per capita realGDP will eventually surpass that of the United States and theNetherlands.

V. The differences between high-income countries (the UnitedStates and the Netherlands) and low-income countries may beexplained by lack of political stability and property rights.

VI. More education and research and development in Bulgaria,Ecuador, and Nigeria will foster higher economic growth rates inthese countries.

The table below reports per capitareal GDP growth rates for a variety of countries, ranked accordingto their 2001 per capita income.

Which of the following comments is correct?

I. China's exceptional growth between 1980 and 2000 supports theconvergence hypothesis.

II. The widening gap between Bulgaria and the United Statessupports the convergence hypothesis.

III. The low growth rates of Bulgaria, Ecuador, and Nigeriacould be explained by low interest rates and high investment.

IV. Because Nigeria's growth rate increased, its per capita realGDP will eventually surpass that of the United States and theNetherlands.

V. The differences between high-income countries (the UnitedStates and the Netherlands) and low-income countries may beexplained by lack of political stability and property rights.

VI. More education and research and development in Bulgaria,Ecuador, and Nigeria will foster higher economic growth rates inthese countries.

A.   All the comments are correct. B.   II, IV, and V only C.   IV, V, and VI D.   I and II only E.   I, III, and V only F.   I, V, and VI only G.   III, IV, and V

Explanation / Answer

I am going to give my opinion on this: I believe F.   I, V, and VI only is the right answer. Obvious I is correct, because China does have a faster GDP growthand is moving toward higher per capita VI is correct, because education and research leads to moreefficient methods of production V is correct ( I am skeptical) because Nigeria (skirmishes betweengovernment's troops and guerillas) and Bulgaria does have lessstable government than developed Nations

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