Two countries, Baltonia and Polonia, have aggregate production functions of the form:
Y = A × K1/3 × H2/3
Both countries have the same number of efficiency units of labor and use the same technology.
However, Baltonia has a lower capital stock than Polonia. Which of the following is likely to be true in this case?
A) The poverty rate in Baltonia is lower than that in Polonia.
B) The gross domestic product of Baltonia is lower than that in Polonia.
C) The gross domestic product of Baltonia is higher than that in Polonia.
D) The Human Development Index of Baltonia is higher than that of Polonia.
B
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The production period in which at least one input is fixed in quantity is the
A) production run. B) long run. C) short run. D) planning horizon.
An unhealthy person would likely choose a medical insurance policy with a
a. low premium and a high deductible. b. high premium and a high deductible. c. high premium and no deductible. d. The unhealthy person would choose not to be insured.