Suppose That the Average Income of a Kenyan Is Higher

question 156

Multiple Choice

Suppose that the average income of a Kenyan is higher than the average income of a South African.What might you conclude

• A)South African firms are faced with stricter government regulations than Kenyan firms.
• B)Total income is divided among fewer workers in Kenya since it has a smaller labour force than South Africa.
• C)Kenya's climate allows for longer growing seasons and therefore Kenya can produce large quantities of grain.
• D)Productivity in Kenya is higher than in South Africa.

---

Definitions:

Absolute Advantage

Absolute advantage refers to the ability of a country, firm, or individual to produce a good or service more efficiently than its competitors using the same amount of resources.

Production Possibilities

The different combinations of goods and services that an economy can produce given its available resources and technology.

Fish

Aquatic animals that are typically covered with scales and have gills for breathing in water.

Coconuts

The large, brown, hard-shelled seeds of the coconut palm, known for their edible white flesh and water, and used in various culinary and non-culinary applications.