Scenario: Farm Country and Industry Country Are Two Neighboring Countries

Multiple Choice

Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one good: good X. Production in both countries is a function of total efficiency units of labor and physical capital stock.
-Refer to the scenario above.How could research and development (R&D) lead to increases in productivity?

A) New technology allows for production of the same output at lower cost.
B) New natural resources are discovered.
C) Workers are better educated.
D) New technology allows for production of the same output with more inputs.