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Economic History of the Soviet Union
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Development economist Bela Balassa proposed that the cost of services differ across countries due in part to:
a. differences in labor productivity and other employment opportunities
b. differences in the treatment of women
c. both a. and b.
Suppose you travel to a country and notice that many middleclass families employ servants. What then might you conclude about the labor productivity of that country?
it is relatively high
it is relatively low
labor productivity cannot be determined
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Copyright 2012 - Tyler Cowen and Alex Tabarrok