Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?
a. both output per worker and productivity
b. output per worker but not productivity
c. productivity but not output per worker
d. neither productivity nor output per worker
d
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A hot dog vendor on a street corner could increase the quantity of hot dogs her customers demand by 12 percent if she lowers the price of a hot dog 10 percent. The demand for the hot dogs is
A) cross elastic. B) arc elastic. C) unit elastic. D) elastic.
Revenue equivalence ________ hold when the item being auctioned has independent private values and ________ hold when the item being auctioned has a common value.
A) does not; does not B) does; does not C) does; does D) does not; does
More than 80% of American firms are incorporated
a. True b. False Indicate whether the statement is true or false
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.09 in the second year. What dollar wage must be paid in the second year?
A. $15.30 B. $16.68 C. $16.09 D. $16.45