Consider two economies: A and B. In economy A, the work culture is such that people do not mind working for 12 hours a day. On the contrary, in economy B, people work for a maximum of 6 hours in a day. If the culture hypothesis holds, then:

A) the growth rate in both economies are likely to fluctuate randomly.
B) economy A is likely to grow faster than economy B.
C) economy B is likely to grow faster than economy A.
D) both economies are likely to grow at the same rate.

B

Economics

You might also like to view...

If a firm is experiencing diminishing returns to a variable input, then:

a. it must be hiring less-productive units of the variable resource. b. it must be experiencing diseconomies of scale. c. the marginal physical product of the variable input must be decreasing. d. the average physical product of the variable input must be decreasing. e. its total product must be decreasing.

Economics

When voting mechanisms substitute for the market mechanism in allocating resources, we are relying on

A. Public choice theory. B. Cost-benefit analysis. C. Ballot box economics. D. Opportunity cost analysis.

Economics