Read the following passage and answer the item that follows. Your answer should be based solely on the passage.

The process by which countries close their labour-productivity gap with the technology leader is based on convergence theory. The convergence model divides economic eras into three phases : the breakaway, the catch-up, and the fine-tuning phase. It also divides economic entities into two categories : the technology leaders and the technology followers.

Which of the following statements is/are correct?
1. The convergence model divides nations into three phases of economic progress.
2. At the heart of the convergence theory is the closing of the gap between labour and productivity.
3. Technology leaders typically have arrived earlier at different economic eras.
4. The time period covered by the convergence theory presented herein encompasses, as mentioned, 4012200 years.
Select the answer using the code given below.

Question

Read the following passage and answer the item that follows. Your answer should be based solely on the passage.

The process by which countries close their labour-productivity gap with the technology leader is based on convergence theory. The convergence model divides economic eras into three phases : the breakaway, the catch-up, and the fine-tuning phase. It also divides economic entities into two categories : the technology leaders and the technology followers.

Which of the following statements is/are correct?
1. The convergence model divides nations into three phases of economic progress.
2. At the heart of the convergence theory is the closing of the gap between labour and productivity.
3. Technology leaders typically have arrived earlier at different economic eras.
4. The time period covered by the convergence theory presented herein encompasses, as mentioned, 4012200 years.
Select the answer using the code given below.

Accepted Answer

1, 3 and 4. Statement 1 is correct — the model divides economic eras (and hence nations as participants in them) into three phases. Statement 2 is incorrect — the gap to be closed is the 'labour-productivity gap' (productivity per worker), not a gap between labour and productivity. Statement 3 is correct — technology leaders by definition develop or adopt the new technology earlier than followers, hence arrive at new economic eras earlier. Statement 4 is correct — adding up the timeframes mentioned: 3,000,000 (scavenging) + 1,000,000 (hunting) + 12,000 (farming) + 200 (industrial) = 4,012,200 years. Hence statements 1, 3 and 4 are correct.

Explanation

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