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 output per worker nor productivity.

Question

Mathematics

Guest

19 June, 02:57

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 output per worker nor productivity.

+3

Answers (1)

Know the Answer?

Valerie Cross · Answer 1

Answer: d

Step-by-step explanation: Both country A and B has equal number of workers, physical capital, human capital and access to natural resources.

Non is higher than the other.