Scenario: the Price of a Standard Basket of Goods in Country

Multiple Choice

Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.
-Refer to the scenario above.Suppose Country A passes a law that requires all workers to complete repeated safety workshops.One year after the law was passed,workers are on average 5 percent less productive.Workers in Country B continue to produce at the same rate as the year before.During the same year,the population in Country A and in Country B increases by 2 percent.Consequently,1 year after Country A passed the new law,________.

A) workers in Country B on average are more productive than workers in Country A
B) GDP in Country A increases, but GDP in Country B may or may not increase
C) GDP per capita in Country A decreases, and GDP per capita in Country B increases
D) GDP per capita in Country A decreases, while GDP in Country A may or may not increase