What Is a Difference Between Developing and High-Income Countries That

Multiple Choice

What is a difference between developing and high-income countries that needs to be considered by policymakers when designing policies that foster economic growth?

A) Innovation is more important to growth in high-income countries because they are more likely to have reached the level of diminishing returns to investments in capital.
B) Innovation is more important to growth in developing countries because technology developed abroad may not be beneficial to those in poverty.
C) Increasing the level of capital per worker will typically yield higher returns in high-income countries where workers are more educated.
D) Additional investment in education has a higher return in high-income countries where the investment takes workers to more advanced skill levels than in countries with a lower average education level.