Chapter 3: Problem 19

The main reason the American farmer can produce more than the farmer in China is that he \- (LO6) c) has more labor a) has more land b) has more capital d) is better trained

Short Answer

Expert verified

The short answer is: d) The American farmer is better trained. This factor encapsulates an overall edge in production, as it often involves learning to use capital more effectively and can lead to better utilization of resources like land, labor, and capital.

Step by step solution

Analyze first choice - More labor

Analyze the choice 'more labor'. This refers to the workforce the farmer has to cultivate the land. More labor usually means more hands to work, which could increase productivity. However, more labor may not necessarily result in more output if the other necessary resources are not sufficiently available, like land or capital. Consider this before concluding the answer.

Analyze second choice - More land

Analyze the choice 'more land'. This refers to the availability of physical area for farming. Technically, more land could lead to more production, assuming other factors of production are constant. However, consider the fact that even if someone has a lot of land, if they do not have the resources (capital and labor) to work on all that land, having more land won't necessarily increase output.

Analyze third choice - More capital

Analyze the choice 'more capital'. In farming, capital could refer to farming equipment like tractors, irrigation systems, and other technologies used in agriculture. More or better capital can significantly improve a farmer's yield because it helps to enhance productivity, even with the same amount of land and labor. It's an important factor to consider in this context.

Analyze fourth choice - Better Trained

Analyze the choice 'better trained'. Being better trained, or having more knowledge or skills, can contribute significantly to productivity. Training can improve farming practices, leading to better utilization of resources like land, labor, and capital. Therefore, on account of better training, the curious aspect in American farmer's side could be due to this factor.

Formulate a likely answer

Considering the influence of all four factors on the production output, option 'b) has more capital' and 'd) is better trained', wherein capital includes advanced farming equipment and training includes superior farming methods and knowledge, would be more compelling choices. That's because these factors are more likely to enhance productivity, even with the same amount of labor and land. However, since the question requires picking a single answer, option 'd) is better trained' seems to encapsulate an overall edge in production, since training often involves learning to use capital more effectively.