Because of its effect on the amount of capital per worker,in the short term an increase in the working population is likely to
A)raise productivity.Other things the same,this increase will be larger in a poor country.
B)raise productivity.Other things the same,this increase will be larger in a rich country.
C)reduce productivity.Other things the same,this decrease will be larger in a poor country.
D)reduce productivity.Other things the same,this decrease will be larger in a rich country.

Question

Quizplus · Accepted Answer

An increase in the working population, without a corresponding increase in capital, will lead to a decrease in the amount of capital per worker, which will reduce productivity. This effect is likely to be larger in poor countries where capital is scarce. Therefore, the best choice is C.

Because of Its Effect on the Amount of Capital Per