Scenario: Two Countries, X and Y, Have Identical Production Functions

question 154

Multiple Choice

Scenario: Two Countries, X and Y, have identical production functions. Country X's GDP is about 8,000,000 and Country Y's GDP is about 3,000,000. Additionally, technology factors are AX = 3 and AY = 10 for country X and Y, respectively. There are 125 workers in Country A and 200 workers in Country B.
-Refer to the scenario above.If we use Country X's technology term to calculate Country B's hypothetical GDP per capita,the difference in GDP per capita between Country A and Country B ________.

• A) decreases by 30,000
• B) increases by 19,000
• C) decreases by 19,000
• D) increases by 15,000

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