Refer to Table 17.1. The labor force participation rate for this simple economy is

Based on Scenario 1 above critically evaluate the following statement. "Because of the disparities in skills between these two men it will not be beneficial for them to trade with one another."

What will be an ideal response?

Investments in public infrastructure ________

A) are not subject to diminishing returns B) are a misallocation of national savings C) typically decline during periods of rapid economic growth D) may boost productivity and income