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

question 133

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.Computing a hypothetical GDP per capita for Country Y allows us to ________.

• A) compare output in the two countries if workers were equally educated
• B) compare output in the two countries if they had equal access to physical resources
• C) compare output in the two countries if they had access to equal technology
• D) all statements are correct

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