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

---

Definitions:

Null Hypothesis

A statement used in hypothesis testing that indicates no effect or no difference, and it's the assumption that the experiment aims to test against.

Test Statistic

A numerical value calculated from a sample data set. It is used in statistical hypothesis testing to determine how extreme the observed data is compared to the null hypothesis.

Standard Error

A statistical measure that quantifies the amount of variability or uncertainty in a sample statistic estimate of a population parameter.

Test Statistic

A calculated value used in statistical testing to determine whether to reject the null hypothesis.