Scenario: Tree Country Has a Population of 18,000 People, of Whom

Scenario: Tree Country has a population of 18,000 people, of whom two-thirds are part of the workforce. The country's only asset is wood, where K = 18,000. The country only produces wooden furniture. In the figure below, Y stands for GDP, and H equals efficiency units of labor.

-Refer to the scenario above.Tree Country's GDP likely will increase if ________.

A) it passes a law that requires college graduates to travel around the world for 1 year before they are allowed to start working
B) the average worker is no longer needs to obtain a college degree in order to be able to find a job
C) Tree Country gives permanent work visas to 5,000 workers from a neighboring country
D) younger generations are less proficient in furniture making but more proficient with modern technology, such as smart phones or personal computers

Correct Answer:

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