Exam 6: Aggregate Incomes

Which of the following is likely to increase the total efficiency units of labor in an economy?

The aggregate production function of an economy shifts upward when ________ produce a higher output.

Scenario: Assume the following aggregate production functions for two countries, A and B, respectively. YA=A KA¹/² ᴴA¹/² ʸB=A KB²/³ ᴴB¹/³ -Refer to the scenario above.Country B's aggregate production function is consistent with the fact that ________.

The following table compares some attributes of workers in South Korea, Spain, and the United States. -Refer to the table above.This table helps illustrate the fact that ________.

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.The aggregate production functions will shift upward when ________ produce(s)a higher output.

The following figure shows two aggregate production functions. -Refer to the figure above.Which of the following statements hold true regarding aggregate production function 2?

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.Again,assume Sweetland has a higher GDP.If all inputs are the same,which of statements below could be responsible?

The income per capita in Ruberia in a certain year was 7,240 rubies,and the income per capita in the United States in the same year was $48,000.A bundle of goods that costs 100 rubies in Ruberia has a price of $1,250 in the United States.Using the PPP-based method,determine which country has a higher income per capita.

Which of the following will result in an upward shift of the aggregate production function?

What is the limitation of using exchange-rate-based measures as indicators of the standards of living across countries?

Scenario: The price of an iPhone 5s in the United States is $399. The table below lists the income per capita and the price of the same iPhone in the domestic currencies of four different countries in 2014. -Refer to the scenario above.Which country has the highest income per capita in PPP-adjusted dollars?

Country A and Country B happen to have the same GDP per capita.The standard of living is said to be higher in Country A than in Country B.This could be because ________.

Scenario: Two economies, A and B, have identical aggregate production functions with diminishing returns. In both economies, capital and labor are equally important for production. Economy A has twice as many efficiency units of labor as economy B. Economy B has twice as much physical capital stock as economy A. -Refer to the scenario above.Over time,economy A develops sophisticated technology,and human capital becomes less and less valuable in the production of goods and services that require more and more physical capital.How will this affect economy A's aggregate production function?

The following figure shows two aggregate production functions. -Refer to the figure above.At point B of aggregate production function 2,a one unit increase in the physical capital stock will lead to a ________.

Scenario: The price of an iPhone 5s in the United States is $399. The table below lists the income per capita and the price of the same iPhone in the domestic currencies of four different countries in 2014. -Refer to the scenario above.The income per capita in Country 2 in PPP-adjusted dollars is ________.

Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries. -Refer to the above scenario.For 100 francs,how many baskets of goods that cost $1 in the United States can one purchase in country A?

The following table shows economic data for two countries. -Refer to the table above.Compared to Country B,Country A ________.

Which of the following causes the aggregate production function to shift up?

The following table compares some attributes of workers in South Korea, Spain, and the United States. -Refer to the table above.Assume students in Spain not only experience longer schooling than do students in South Korea,but also higher quality schooling.A measure that calculates the income per worker if technology in a country were at the United States' level would likely ________.

The total efficiency units of labor in an economy increases if ________.