Scenario: Two Neighboring Countries, Sweetland and Sourland, Are Identical in Terms

question 122

Multiple Choice

Scenario: Two neighboring countries, Sweetland and Sourland, are identical in terms of size, population (800,000) , education of workforce, and value of natural resources owned.
-Refer to the scenario above.Workers in Sweetland are highly unionized.Among other factors,this makes it more difficult for firms in Sweetland to hire and fire workers than it is for firms in Sourland.It is likely that ________.

• A) Sweetland's aggregate production function lies above Sourland's aggregate production function
• B) Sweetland's output is more dependent on total efficiency units of labor
• C) Sweetland's labor force produces less efficiently
• D) Sweetland's productivity is higher

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