Consider two economies. If each country has the same production function and the same amount of capital and labor, the country that ________ produces more.
A) is less productive
B) is more productive
C) has more natural resources
D) has lower costs of production
E) has more workers

Question

Quizplus · Accepted Answer

The country that is more productive will produce more given the same amount of capital and labor as the other country, even if they have the same production function.

Consider Two Economies