1. Explain 'labor productivity' and to what extend it accurately measures the standard of living.
2. The catch-up effect signifies that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries, we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, demonstrate what would tend to prohibit or limit a poor country's ability to catch up with the rich ones.