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dmalex13 dmalex13
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A year ago
Scenario: Two economies, A and B, have identical aggregate production functions with diminishing returns. In both economies, capital and labor are equally important for production. Economy A has twice as many efficiency units of labor as economy B. Economy B has twice as much physical capital stock as economy A.


Refer to the scenario above. Economy A has a higher GDP if ________.

▸ its economy is not subject to the Law of Diminishing Marginal Product

▸ its population is better educated than economy B's population

▸ its working population is bigger than economy B's working population

▸ it employs more advanced technology in production than does economy B
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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mhmoud123mhmoud123
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A year ago
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A year ago
You make an excellent tutor!
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This helped my grade so much Perfect
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Helped a lot
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