A country with a population growth of 5 percent and capital growth of 10 percent is better off than a country with population growth of 2 percent and capital growth of 2 percent. Please answer true or false and explain.

Question

Quizplus · Accepted Answer

The country with the higher rate of population growth has a capital labor ratio that is growing more quickly because the rate of capital growth is so much higher than the other country. The other country has a constant capital labor ratio.

A Country with a Population Growth of 5 Percent and Capital