The main reason income per capita and income per worker vary across countries is because ________.
A) prices vary across countries
B) productivity varies across countries
C) currencies vary across countries
D) interest rates vary across countries

Question

Quizplus · Accepted Answer

Productivity is the main driver of income per capita and income per worker differences across countries as it determines the amount of output that can be produced per unit of input (such as labor). Other factors such as prices, currencies, and interest rates can also have some impact, but their influence is generally not as significant as productivity differences.

The Main Reason Income Per Capita and Income Per Worker