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Which Change Is Likely to Increase Wages the MOST in a Country

Question 76

Multiple Choice

Which change is likely to increase wages the MOST in a country?


A) Drainage of swampy land allows 2% more land to be farmed.
B) The labor force grows by 2%.
C) The capital-to-labor ratio rises by 2%.
D) Since the growth rate is 2% in all listed situations, wages would increase equally in all of them.

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