The principal reason that production possibilities have grown more rapidly in Hong Kong than in Canada over the last 50 years is because
A)of cheap Hong Kong labour.
B)of foreign aid to Hong Kong.
C)Hong Kong has fewer workers.
D)Hong Kong has more natural resources.
E)Hong Kong has devoted a larger proportion of its resources to capital accumulation.

Question

Quizplus · Accepted Answer

Hong Kong has devoted a larger proportion of its resources to capital accumulation, which has led to faster growth in production possibilities compared to Canada. This includes investments in infrastructure, technology, and education which increase productivity and efficiency. Cheap labour and foreign aid may have played a role, but they are not the principal reason for the faster growth in production possibilities. The number of workers and natural resources are also not the main factors, as evidenced by other countries with larger populations and more resources that have not seen comparable growth rates.

The Principal Reason That Production Possibilities Have Grown More Rapidly