Suppose Two Countries Are Identical in Every Way with the Following

question 49

Multiple Choice

Suppose two countries are identical in every way with the following exception.Economy A has a greater quantity of human capital than economy B.Given this information,we know with certainty that

• A)steady state consumption in A is higher than in B.
• B)steady state consumption in A is lower than in B.
• C)steady state consumption in A and in B are equal.
• D)steady state growth of output per worker is higher in A than in B.

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Definitions:

Total Cost

The sum of all costs incurred by a business in producing a given level of output, including both fixed and variable costs.

Product Price

refers to the amount of money required to purchase a specific good or service offered by a business.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Market Demand

The total demand for a product or service within a particular market, including all consumers' willingness and ability to purchase at various prices.