Suppose there are two countries. In the rich country, the representative consumer has "Hr" units of human capital, and TFP is "zr". In the poor country, the representative consumer has "Hp" units of human capital, and TFP is "zp". Assume that "b" and "u" are the same in both countries, "Hr >Hp", and "zr > zp"
(a) How do the levels of per capita income, the growth rates of per capita income, and real wages compare between the rich and poor countries?
(b) If consumers could choose their country of residence, where would they want to live?