An Efficient Economy Would Set the Marginal Product in the Traditional

question 35

Multiple Choice

An efficient economy would set the marginal product in the traditional sector

• A) lower than that in the modern non-traditional sector.
• B) higher than that in the modern sophisticated sector.
• C) equal to that in the modern sophisticated sector.
• D) lower in the relatively capital intensive sector.
• E) higher in the relatively capital intensive sector.