Suppose that the average income of a Kenyan is higher than the average income of a South African.You might conclude that
A) Kenyan firms are faced with stricter government regulations than South African 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 given information states that the average income of a Kenyan is higher than that of a South African. This could be an indication of higher productivity in Kenya than in South Africa. It is reasonable to assume that increased productivity leads to higher incomes for workers. Therefore, D is the best choice. Options A, B, and C do not have a strong connection to the given information about income levels.

Suppose That the Average Income of a Kenyan Is Higher