Suppose two countries are identical in every way with the following exception. Economy A has a greater quantity of human capital than economy B. Given this information, we know with certainty that
A) steady state consumption in A is higher than in B.
B) steady state consumption in A is lower than in B.
C) steady state consumption in A and in B are equal.
D) steady state growth of output per worker is higher in A than in B.
A
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Which of the following is a cause of growing income inequality in the United States since 1975?
A. Exporting to other countries by major U.S. industries B. Industrial restructuring from services to goods production C. A widening wage gap between skilled and unskilled workers D. An increase in the progressivity of the Federal tax system
GDP per capita
A. Indicates the most efficient use of resources. B. Is real GDP corrected for price level changes. C. Is equal to a nation's GDP divided by its population. D. Does not permit comparisons of the economic welfare of different nations.