Two Economies Are Identical Except That the Level of Capital

question 12

Multiple Choice

Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production functions in both economies exhibit diminishing marginal product of capital. An extra unit of capital per worker increases output per worker:

• A) more in Highland.
• B) more in Lowland.
• C) by the same amount in Highland and Lowland.
• D) in Highland, but not in Lowland.

---

Definitions:

Japanese Invasion

Denotes the period during World War II when Japan expanded its empire by forcefully occupying territories in Asia and the Pacific, significantly impacting the course of global events.

French Indochina

A colonial territory in Southeast Asia under French rule from the late 19th century until the mid-20th century, including present-day Vietnam, Laos, and Cambodia.

Freezing Assets

Freezing assets involves the legal process of preventing an individual or corporation from accessing their money or property, typically as part of criminal investigations or punishment for financial crimes.

Military Service

Employment in any branch of the armed forces or national army where individuals are trained for combat.