If South Korea's steady-state GDP per worker is higher than that of the Philippines, you might conclude that:
A) the investment rate in South Korea is higher than in the Philippines
B) South Korea is less productive than the Philippines
C) the depreciation rate in South Korea is higher than in the Philippines
D) South Korea has a larger population
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

GDP per worker is a measure of productivity, and a higher GDP per worker suggests that workers in South Korea are more productive than those in the Philippines. One possible reason for this difference in productivity is a higher investment rate in South Korea, which allows for more modern infrastructure and machinery that can boost worker productivity.

If South Korea's Steady-State GDP Per Worker Is Higher Than