Use the following to answer questions :
Figure: Nations A and B
-(Figure: Nations A and
B) Look at the figure Nations A and B. Suppose that in 1960 each nation had $100 of physical capital for each worker and in 2010 each nation had $400 of physical capital per worker. Clearly in both 1960 and in 2010 nation A was producing more real output per capita with the same amount of physical capital per worker. What could explain the difference in these aggregate production functions?

Question

Use the following to answer questions :
Figure: Nations A and B 
-(Figure: Nations A and
B) Look at the figure Nations A and B. Suppose that in 1960 each nation had $100 of physical capital for each worker and in 2010 each nation had $400 of physical capital per worker. Clearly in both 1960 and in 2010 nation A was producing more real output per capita with the same amount of physical capital per worker. What could explain the difference in these aggregate production functions?

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The Answer of Use the following to answer questions :
Figure: Nations A and B 
-(Figure: Nations A and
B) Look at the figure Nations A and B. Suppose that in 1960 each nation had $100 of physical capital for each worker and in 2010 each nation had $400 of physical capital per worker. Clearly in both 1960 and in 2010 nation A was producing more real output per capita with the same amount of physical capital per worker. What could explain the difference in these aggregate production functions?

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