Answer :
The correct answer is: a. both output per worker and productivity. Both output per worker and productivity are higher in Country A compared to Country B.
In the given scenario, Country A has twice as much labor, physical capital, human capital, and access to natural resources compared to Country B. We are assuming constant returns to scale, which means that increasing all inputs proportionally will result in an equivalent increase in output. Based on these conditions, we can analyze the impact on output per worker and productivity in Country A.
a. Output per worker and productivity:
Since Country A has twice as much labor as Country B, output per worker in Country A is likely to be higher. With constant returns to scale, doubling the labor input should lead to a proportional increase in output. Therefore, output per worker is higher in Country A compared to Country B.
Additionally, Country A also has twice as much physical capital, human capital, and natural resources as Country B. These factors contribute to higher productivity in Country A. With more inputs available, the production process can be more efficient, resulting in higher productivity levels.
Therefore, both output per worker and productivity are higher in Country A compared to Country B.
It's important to note that this analysis assumes constant returns to scale and that all inputs are effectively utilized. In real-world situations, other factors such as technology, infrastructure, institutions, and market conditions can also influence output per worker and productivity.
Economic development is a complex process influenced by numerous factors, and a comprehensive analysis would require considering a range of additional factors beyond the inputs mentioned in the scenario.
for more questions on productivity
https://brainly.com/question/6430277
#SPJ11
