In comparing two countries with different levels of education but the same saving rate, same rate of population growth, and same rate of technological progress, one would expect the more highly educated country to have:
A) a higher growth rate of total income and a higher real wage.
B) a higher growth rate of total income and the same real wage.
C) the same growth rate of total income and a higher real wage.
D) the same growth rate of total income and the same real wage.

Question

Quizplus · Accepted Answer

A more highly educated country is likely to have a more skilled workforce, leading to higher productivity and thus higher real wages, but the growth rate of total income would remain the same due to identical saving rates, population growth, and technological progress.

In Comparing Two Countries with Different Levels of Education but the Same