Country A has twice as many workers as Country B.Country A also has twice as much physical capital,twice as much human capital,and access to twice as many natural resources as Country B.Assuming constant-returns to scale,which of the following is higher in Country A?
A)both output per worker and productivity
B)output per worker but not productivity
C)productivity but not output per worker
D)neither productivity nor output per worker

Question

Quizplus · Accepted Answer

Under constant returns to scale, doubling all inputs (workers, physical capital, human capital, and natural resources) in Country A compared to Country B results in doubling the total output, but output per worker and productivity remain the same.

Country a Has Twice as Many Workers as Country B