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primewire primewire
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Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.


Refer to the scenario above. Assume workers in Country A on average work 10 percent more hours for their equivalent income than workers in Country B. What would happen to GDP per capita in Country B if workers in Country B were required to increase their work by 10 percent for their equivalent income?

▸ The difference between GDP per capita in Countries A and B would increase.

▸ Country B's GDP per capita would remain constant.

▸ The difference between GDP per capita in Countries A and B would decrease.

▸ Country B's GDP per capita would be equal to GDP per capita in Country A.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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jasmjasm
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primewire Author
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A year ago
Good timing, thanks!
SupremeDJ
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Yesterday
Thank you, thank you, thank you!
spaghetti
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2 hours ago
Thanks for your help!!
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