Country a Has a Smaller Stock of Capital Than Country

question 103

Multiple Choice

Country A has a smaller stock of capital than Country B,but the supply of labor in both countries is equal.What does this imply?

• A) The increase in output due to the use of an additional unit of capital will be smaller in Country A than in Country B.
• B) The increase in output due to the use of an additional unit of capital will be larger in Country A than in Country B.
• C) The use of an additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
• D) The use of an additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.

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Definitions:

Probability

The likelihood of an event happening is measured on a scale from 0 to 1, where 0 equals no chance of occurring and 1 denotes definite occurrence.

Normal Model

A type of statistical distribution that is symmetric and bell-shaped, representing the distribution of many types of data; commonly known as the normal distribution.

Safety Roadblock

A barrier or measure implemented to enhance safety by preventing accidents or unsafe situations.

Seat Belt

A safety device in vehicles, designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.