Two Countries Are the Same,except One Is Poorer

question 47

Multiple Choice

Two countries are the same,except one is poorer.Assuming the traditional assumption about the production function is made there are

• A)diminishing returns to capital so the poor country grows slower.
• B)increasing returns to capital so the poor country grows slower.
• C)diminishing returns to capital so the poor country grows faster.
• D)increasing returns to capital so the poor country grows faster.

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