Xenonia has a larger supply of labor than Techland. If the labor supply in both the countries increases by the same amount while their capital stocks remain unchanged, ________.
A) the increase in Techland's output will be more than the increase in Xenonia's output
B) the increase in Xenonia's output will be more than the increase in Techland's output
C) Xenonia's income per capita will decrease while Techland's income per capita will increase
D) Xenonia's income per capita will increase while Techland's income per capita will decrease
Question 2
The question of How are goods and services produced? most closely addresses which of the following issues?
A) Why are Christmas trees popular only in December?
B) Should contractors build residential housing or shopping malls?
C) Is income distributed fairly in the United States?
D) Should Ford build SUVs or luxury cars?
E) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
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