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Scenario: Two neighboring countries, Sweetland and Sourland, are identical in terms of size, ...

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Scenario: Two neighboring countries, Sweetland and Sourland, are identical in terms of size, ...

Scenario: Two neighboring countries, Sweetland and Sourland, are identical in terms of size, population (800,000), education of workforce, and value of natural resources owned.

Refer to the scenario above. Assume Sweetland has a higher GDP than does Sourland. Which of the following inputs in production might be greater in Sweetland?

▸ Land

▸ Total efficiency units of labor

▸ Capital

▸ Entrepreneurship

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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