Scenario: Country X has 1,000 workers. The country's aggregate production function is YX = 1.5 KX²/³ HX¹/³, where KX = 1,000,000 and HX = 2,500,000.
-Refer to the scenario above.Country Y has exactly as many workers as Country X.Its total efficiency units of labor are equal to 3,000,000.This could imply that ________.
A) Country Y has better technology
B) Country Y's workers on average have less schooling
C) Country Y has higher returns to labor
D) Country X's workers on average have less schooling

Question

Quizplus · Accepted Answer

The Answer of Scenario: Country X has 1,000 workers. The country's aggregate production function is YX = 1.5 KX²/³ HX¹/³, where KX = 1,000,000 and HX = 2,500,000.
-Refer to the scenario above.Country Y has exactly as many workers as Country X.Its total efficiency units of labor are equal to 3,000,000.This could imply that ________.
A) Country Y has better technology
B) Country Y's workers on average have less schooling
C) Country Y has higher returns to labor
D) Country X's workers on average have less schooling

Scenario: Country X Has 1,000 Workers