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.The aggregate production functions will shift upward when ________ produce(s) a higher output.

A) the same amount of capital and a higher amount of labor
B) a higher amount of capital and labor
C) the same amount of labor and a higher amount of capital
D) the same amount of capital and labor