Which statement best describes what will happen if a poor country with little capital and a rich country with a lot of capital each add a single unit of capital?
a. The rich country will experience a relatively large increase in production, while the poor country will experience a relatively small increase in production.
b. The poor country will experience a relatively large increase in production, while the rich country will experience a relatively small increase in production.
c. The poor country will experience a relatively small increase in production, and the rich country will experience a relatively small increase in production.
d. The poor country will experience a relatively large increase in production, and the rich country will experience a relatively large increase in production.
b. The poor country will experience a relatively large increase in production, while the rich country will experience a relatively small increase in production.
You might also like to view...
Since World War II, about ______ out of every ten family farms have disappeared.
A. one B. three C. five D. seven
If the market price is above a firm's average cost at the quantity produced
A) the firm operates and makes a profit. B) the firm operates and make zero economic profit. C) the market price of the firm's inputs will rise. D) total profit is maximized.
The ________ automatically distributes scarce goods.
A. command economy B. price system C. barter system D. laissez-faire economy
In developing countries, economists have found ________ correlation between a person's height and the wages he can earn in the farming sector
A) no B) an inverse C) a weak D) a strong