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According to the production model some countries are richer (i.e., they have a higher per capita...

According to the production model some countries are richer (i.e., they have a higher per capita GDP, y=Y/L) than others because: a. They have a larger population d. Households consume a larger fraction of their income b. Their money supply is larger e. Government purchases are larger c. They have more capital per worker and a more efficient technology

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According to the production model some countries are richer (i.e., they have a higher per capita GDP, y=Y/L) than others because: c. They have more capital per worker and a more efficient technology.

Difference in human capital can differ in different countries. Workers will be more more productive if they have large capital available for production. An economy having better technology will use its capital and labour efficiently, thus improving productivity.

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