The total number of workers in two different countries is equal.However,workers in Country A are three times more productive than workers in Country B.Which of the following is true in this case?
A) The total efficiency units of labor in Country A is one-third the total efficiency units of labor in Country B.
B) The total efficiency units of labor in Country A is three times more than the total efficiency units of labor in Country B.
C) The physical capital stock in Country B is three times more than the physical capital stock in Country A.
D) The total efficiency units of labor in Country B is six times more than the total efficiency units of labor in Country B.

Question

Quizplus · Accepted Answer

Since the number of workers in both countries is the same, the productivity difference will directly translate into higher efficiency units of labor in Country A. Therefore, the total efficiency units of labor in Country A will be three times more than the total efficiency units of labor in Country B. Option A is incorrect because total efficiency units of labor in Country A would be three times more, not one-third. Option C is irrelevant to the given scenario. Option D is incorrect because it contradicts with the initial statement that workers in Country A are three times more productive than workers in Country B.

The Total Number of Workers in Two Different Countries Is