Suppose Two Countries Are Identical in Every Way with the Following

question 41

Multiple Choice

Suppose two countries are identical in every way with the following exception. Economy A has a greater quantity of human capital than economy B. Given this information, we know with certainty that:

• A) steady state output per worker in A is higher than in B.
• B) steady state growth of output per worker is higher in A than in B.
• C) steady state consumption in A and B are the same.
• D) steady state output per worker in A is lower than in B.
• E) steady state growth of output per worker is higher in B than in A.

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Definitions:

Trophoblast

The outer cell layer of a late blastocyst, which in placental mammals gives rise to the chorion and to the fetal contribution to the placenta.

Blastocyst

An early stage of mammalian embryonic development, characterized by a sphere of cells surrounding a fluid-filled cavity and an inner cell mass that will develop into the fetus.

Limb Buds

The early developmental structures in vertebrate embryos which will develop into the limbs (arms and legs).

Muscles Differentiate

The process by which muscle cells undergo specialization, acquiring characteristics specific to muscle tissue types such as skeletal, cardiac, or smooth muscle.