Exam 6: Aggregate Incomes

The average income per capita in a country in its own currency is 75,000 units.If U.S.$1 is worth 20 units of its currency,the income per capita in the country in dollars is ________.

Scenario: Country X and Country Y have identical aggregate production functions as shown in the figure below. The amount of physical capital stock available to each country is also equal. However, the labor supply for Country X is HX, while the labor supply for Country Y is HY. -Refer to the scenario above.A one-unit increase in the efficiency units of labor will lead to ________ in output in Country X than in Country Y.

In France and Spain,a Big Mac costs 1 euro.Yet the standard of living is higher in ________.

The following figure shows two aggregate production functions. -Refer to the figure above.Assume the economy is at point B of the aggregate production function 2 in 2010.It will move toward point A in 2012 if the ________.

What are the features of a Cobb-Douglas production function?

If ________,the total efficiency units of labor will increase.

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.What will likely happen if there is an increase in entrepreneurial activity in Industry Country?

Suppose the average productivity of workers in Country A is equal to that of workers in Country B.If Country A has higher total efficiency units of labor than Country B,it implies that ________.

Scenario: Red Country and Purple Country have identical aggregate production functions. The amount of physical capital stock available to each country is equal. Labor supply in Red Country is HR, while the labor supply in Purple Country is HP. -Refer to the scenario above.They imply that the ________.

Scenario: In 2010, Bozone had fifteen full-time (40 hours per week) employees and brewed 10 million cans of beer in 300 business days. Bozone paid each employee $15 per hour. In 2015, production increased to 20 million cans, and five new employees were hired. A new policy allowed employees to take the day off if it is a powder day at Bridger ski resort. -Refer to the scenario above.As a consequence of the new policy,productivity at Bozone ________.

Scenario: Two neighboring countries, Sweetland and Sourland, are identical in terms of size, population (800,000), education of workforce, and value of natural resources owned. -Refer to the scenario above.Sweetland and Sourland face identical production functions and have the same amounts of inputs available for production.GDP per capita is $45,000 in Sourland and $38,000 in Sweetland.Which of the following statements could help explain this discrepancy?

The following table shows the GDP and total population in a particular year for four fictional countries: -Refer to the table above.Which country is likely to have the highest rate of poverty?

A country's physical capital stock decreases after a war while its labor supply remains constant.Which of the following will happen in this case if output is a function of physical capital stock and the efficiency units of labor?

The following table compares some attributes of workers in South Korea, Spain, and the United States. -Refer to the table above.Which factor below does not contribute to the average American being richer than the average South Korean?