Consider two countriesA and B. Both the countries are identical ...

[fahad]

Consider two countriesA and B. Both the countries are identical except for the fact that institutions are extractive in country A and institutions are inclusive in country B.
 
  Given this information, which of the following statements will be true?
  A) Country A will be characterized by higher output and larger number of entrepreneurs than country B.
  B) Country A will be characterized by lower output but larger number of entrepreneurs than country B.
  C) Country A will be characterized by lower output and smaller number of entrepreneurs than country B.
  D) Country A will be characterized by higher output but lower number of entrepreneurs than country B.

Question 2

Which of the following should be included in U.S. GDP?
 
  A) a 3D television manufactured in Thailand and sold in the United States
  B) a 3D television manufactured in the United States and sold in Thailand
  C) a 3D television manufactured in Thailand by a U.S. firm and sold in the United States
  D) a used 3D television manufactured in the United States and sold in Thailand

[k.lashomb]

Answer to Question 1

C

Answer to Question 2

B