What challenge does a wealthy nation face when trying to sustain rapid economic growth?

Show Answers

It completely eliminates the need for skilled labor.Its capital experiences increased efficiency because of the 'catch-up effect.'None of the provided choices are correct.Growth may slow down due to diminishing returns on additional capital.

Explanation

A wealthy country does not stop requiring human capital. The 'catch-up effect' typically applies to developing nations, not wealthy ones. The main difficulty for affluent countries is that as they accumulate more capital, the incremental gains in growth tend to decrease, making rapid expansion more challenging.