Question

Suppose that a new government is elected in Lawrencia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Lawrencia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably __________.
a. Raise real GDP per person and productivity in Lawrencia.
b. Raise real GDP per person but not productivity in Lawrencia.
c. Raise productivity but not real GDP per person in Lawrencia.
d. Raise neither productivity not real GDP per person in Lawrencia.

Answer 1

Answer:

The correct answer is option A

a. Raise real GDP per person and productivity in Lawrencia

Explanation:

GDP per capita shows the GDP per person in a country and is calculated as GDP/population.

A high GDP per capita shows the progress and productivity of the country. Therefore for a long lasting effect in Lawrencia, the GDP per person will increase progressively as well as productivity.