Use the figure below to answer the question that follows. F United Kingdom (UK) N O VMPKn South Africa (RSA) B Total capital stock of UK and RSA R G A H T VMPKS Which of the following statements is incorrect regarding the impact of the capital transfer on the returns of factors in both countries?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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a.For South Africa, total return on capital in RSA falls from O*HMA to O*TRA

b.For South Africa, return for other factors increases from HM to THE

C.The total return on capital in the UK increases from OCGA to ONRA

d.total return on capital in RSA rises from O*HMA to O*TRA

 

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Use the figure below to answer the
question that follows.
United Kingdom (UK)
F
N
O
VMPKn
South Africa (RSA)
B
Total capital stock of UK and RSA
R
G
A
H
T
VMPKS
Which of the following statements is
incorrect regarding the impact of the
capital transfer on the returns of factors
in both countries?
Transcribed Image Text:Use the figure below to answer the question that follows. United Kingdom (UK) F N O VMPKn South Africa (RSA) B Total capital stock of UK and RSA R G A H T VMPKS Which of the following statements is incorrect regarding the impact of the capital transfer on the returns of factors in both countries?
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