19. Country A and country B both increase their capital stock by one unit. Real output in country A increases by 12 while real output in country B increases by 15. Other things the same, country A is A) richer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. B) richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units. C) poorer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. D) poorer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
19. Country A and country B both increase their capital stock by one unit. Real output in country A increases by 12 while real output in country B increases by 15. Other things the same, country A is A) richer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. B) richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units. C) poorer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. D) poorer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Looking to get the answer to the question, I know it's B. But I need an explanation, all the other ones on chegg are wrong. Country A is more rich but I dont understand why.
Give proper explanation. I ll rate.
Transcribed Image Text:19. Country A and country B both increase their capital stock by one unit. Real output in
country A increases by 12 while real output in country B increases by 15. Other things
the same, country A is
A) richer than Country B. If Country A adds another unit of capital, output will
increase by more than 12 units.
B) richer than Country B. If Country A adds another unit of capital, output will
increase by less than 12 units.
C) poorer than Country B. If Country A adds another unit of capital, output will
increase by more than 12 units.
D) poorer than Country B. If Country A adds another unit of capital, output will
increase by less than 12 units.
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