Scenario: Two Economies, a and B, Have Identical Aggregate Production

question 12

Multiple Choice

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 ________.

• A) its working population is bigger than economy B's working population
• B) its population is better educated than economy B's population
• C) its economy is not subject to the Law of Diminishing Marginal Product
• D) it employs more advanced technology in production than does economy B

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Definitions:

Attitudes

Attitudes are psychological tendencies or evaluations expressed by favoring or disfavoring particular people, places, things, or events.

Leadership Styles

The approaches and methods used by leaders to motivate, guide, and manage teams.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender diverse people.

Contingency Model

A leadership theory that suggests the effectiveness of a leader depends on the context of the situation and the leader’s ability to adapt to it.