Suppose Nations a and B Begin with the Same Production

question 46

Multiple Choice

Suppose nations A and B begin with the same production functions and the same access to technology, but nation A has only a portion of the capital stock per worker that nation B has. Which of the following statements is false?

• A) Additional capital stock investment will yield a higher return in nation A.
• B) Capital stock per worker will increase in nation A relative to nation B.
• C) The level of capital stock in both nations eventually will be equal.
• D) Income per capita in both nations eventually will be equal.
• E) Capital stock per worker in nation A eventually will equal that of nation B.

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Definitions:

Homespun Clothing

Clothing made from cloth spun at home, symbolizing self-reliance and resistance to British goods during the American Revolutionary era.

Women Shopkeepers

Female entrepreneurs who own or manage retail businesses, highlighting the role of women in commerce and the economy.

Restrictions

Rules or regulations that limit, control, or restrict certain activities, behaviors, or freedoms.

Quartering Act

refers to laws passed by the British Parliament requiring American colonies to provide housing and accommodations for British troops, notably leading up to the American Revolutionary War.