Consider two economies, A and B. Both have the same population and all figures given below are per person for each economy.

Economy A has GDP $100,000 and B has GDP 150,000. The market exchange rate between the currencies used in A and B is $1 = 2. Both economies produce a manufactured good and services (which include childcare).

Manufacturing is 25% of the value of market output in both economies. The market price of a manufactured good is $1,000 in Economy A and 2,000 in Economy B.

Services have price $100 in A and 100 in B. The capital stock (made up of manufactured goods) in Economy A is $1 million and 1 million in Economy B.

Capital depreciates at rate 10% in both economies.

Economy A has net foreign income of $10,000 and Economy B has net foreign income of 20,000. In Economy B, all childcare is provided within the family, whereas in Economy A, all childcare is purchased in the market.

Including non-market work, people in Economy B work the same number of hours as people in Economy A.

Question: Assuming all else is equal, in which economy do you think people are better off? Please give a detailed justification.