Question

Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania. You might conclude that a. Polish firms are faced with stricter government regulations than Romanian firms. b. total income is divided among fewer workers in Poland since it has a smaller labor force than Romania. c. Romania's climate allows for longer growing seasons and therefore Romania can produce large quantities of grain and other crops. d. productivity in Poland is higher than in Romania.

Answer 1

Answer:

D) productivity in Poland is higher than in Romania.

Explanation:

Income and wages are directly related to productivity and economic growth. Productivity refers to the total output produced by each unit of labor, an almost all variations in the standard of living of a country and most variations in economic growth are associated with it.

The logic is that a worker that is able to generate a higher level of output should earn a higher income. E.g. if you are a salesperson that sells $200,000 worth of merchandise per month should earn more money that another salesperson that only sells $50,000 per month. Generally, the more money you earn, the higher your standard of living.

Answer 2

Answer:

D

Explanation:

Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania. You might conclude that productivity in Poland is higher than in Romania.