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

Comparative GDP MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Comparative GDPeconomics-mcqs › comparative-gdp
Published
2 Jun 2019
Last updated
28 May 2026

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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.

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