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Determine The Rule of Divergence in General
Though even if attention is confined to non-communist-ruled economies there still has been huge divergence in relative output per worker levels over the past hundred years. Since 1870 ratio of richest to poorest economies has increased six fold. Back in 1870 two-thirds of all countries had GDP per capital levels between 60 and 160 percent of the average. Today the range which holds two-thirds of all countries extends from 35 to 280 percent of the average.
Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are o
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unique product
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"price is becoming cheaper,yet the demand for car is not rising".does it mean law of demand is not operative?
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