Use B as the Exponent for Physical Capital, and C

question 105

Multiple Choice

Use b as the exponent for physical capital, and c as the exponent for human capital. Assume that b = 0.25 and c = 0.60. Further assume that per person income of a rich country is 10 times that of a poor country.
-Refer to the information above.What is the approximate value of the multiple of combined physical and human capital that the rich country must have in order to produce 10 times the output per person of the poor country?

• A)12
• B)25
• C)100
• D)1000

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