Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania.You might conclude that
A)Polish firms are faced with stricter government regulations than Romanian firms.
B)total income is divided among fewer workers in Poland since it has a smaller labor force than Romania.
C)Romania's climate allows for longer growing seasons and therefore Romania can produce large quantities of grain and other crops.
D)productivity in Poland is higher than in Romania.

Question

Quizplus · Accepted Answer

The difference in average income is likely due to productivity differences between the two countries, as higher productivity allows for higher wages and greater output per worker. The other choices do not provide a clear explanation for the income difference.

Suppose the Average Income of a Citizen of Poland Is