A rural village in a developing country has an economy based on agriculture.Then the government of the country provides the village with newly developed hybrid seeds that more than double the agricultural yield per acre.This story illustrates the growth of per capita GDP in the village through which factor(s)of production?

Question

Quizplus · Accepted Answer

The story illustrates the growth of per capita GDP in the village through the factor of technological knowledge. The newly developed hybrid seeds represent a technological improvement that has increased the agricultural yield per acre, leading to a growth in economic output and hence an increase in per capita GDP. The story does not necessarily indicate an increase in physical or human capital.

A Rural Village in a Developing Country Has an Economy