Workers in ________ countries have ________ to work with than do workers in low income countries.

Question

BlackTom AI · Accepted Answer

To approach this question, I’ll lay out each option and assess what it says about differences between high-income and low-income countries with respect to capital and labor.
Option a: 'high income; less physical capital' suggests that high-income countries have less physical capital than low-income countries. This contradicts typical economic patterns, where high-income economies generally have abundant physical capital to support more productive activities. Therefore this statement is inaccurate.
Option b: 'high income; more labour' claims that high-income countries have more labour than low-income countries. In reality, many high-income countries have smaller populations and slower population growth compared to many low-income countries, and the statement ignores the reality that labor supply alone does not explain income differences. Thus this option is misleading and generally incorrect.
Option c: 'low income; less labour' asserts low-income countries have less labour, but low-income countries often have substantial or even large labor forces, sometimes with high participation rates, which would not consistently align with this claim. The pairing here is inconsistent with common economic observations, so this option is not supported.
Option d: 'high income; more physical capital' tells us that high-income countries possess more physical capital (machinery, buildings, infrastructure) relative to low-income countries. This aligns with the standard economic understanding that wealthier nations tend to accumulate capital goods, enabling higher productivity and output. Therefore this statement correctly characterizes the contrast between high-income and low-income countries.
In summary, option d aligns with well-established patterns of capital deepening in affluent economies, while the other options propose combinations that run counter to widely observed economic structures and would lead to incorrect conclusions about capacity and development.

MCD2090 Macroeconomics - Trimester 2 - 2025

Workers in countries have to work with than do workers in low income countries.

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