If South Korea's steady-state GDP per worker is higher than that of the Philippines, you might conclude that ________, ceteris paribus.
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 is correct

Question

Quizplus · Accepted Answer

The steady-state GDP per worker reflects the productivity of a country's workforce. Assuming all other factors are constant (ceteris paribus), a higher GDP per worker in South Korea indicates a higher investment rate. Investment in physical capital, technology, and human capital can increase labor productivity and output.

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