Suppose that the average income of a Kenyan is higher than the average income of a South African.You might conclude that
A)South African firms are faced with stricter government regulations than Kenyan firms.
B)total income is divided among fewer workers in Kenya since it has a smaller labor force than South Africa.
C)Kenya's climate allows for longer growing seasons and therefore Kenya can produce large quantities of grain and other crops.
D)productivity in Kenya is higher than in South Africa.

Question

Quizplus · Accepted Answer

The higher average income in Kenya compared to South Africa suggests that productivity in Kenya is higher than South Africa. This means that Kenyan workers are producing more output per hour worked, which translates into higher wages and incomes. It is not necessarily related to government regulations or the size of the labor force. Additionally, the climate and agricultural production in Kenya may also contribute to the economy but are not necessarily related to average incomes.

Suppose That the Average Income of a Kenyan Is Higher