Exam 6: Aggregate Incomes

The value of a vacation home in Italy to its American owner will increase if the ________.

If the population of a country increases,GDP remaining constant,then its ________.

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.What does the slope of the aggregate production function imply?

What is Moore's Law?

A bundle of goods that costs $1 in the United States is worth 5 units in Country A's currency.If Country A's GDP in its own currency is 5,000,000 units,Country A's GDP in PPP-adjusted dollars will be ________.

Countries with a higher income per capita are likely to have a ________.

Which of the following is an example of physical capital in agricultural production?

The following figure shows the total output that an economy can produce using varying amounts of capital. -Refer to the figure above.The increase in output due to a one-unit increase in capital is the smallest at point ________.

An aggregate production function shows ________.

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 scenario above.Why could it be the case that the standard of living is higher in country B than in country A?

The ________ in output due to each additional unit of a factor of production is ________ when other factors are held constant.

The following table shows economic data for two countries. -Refer to the table above.The GDP per capita in Country A adjusted for purchasing power parity (PPP)is equal to ________.

The GDP of Neonland is 450,000 neons.It has a total population of 1,500; 30 percent of the total population in Neonland comprises retired workers,50 percent of the population is employed,and the remaining are unemployed children. a)Calculate the income per capita in Neonland. b)What is the income per worker in Neonland? c)Is there a difference between the two measures? If yes,explain the reason for this difference.

Which of the following is likely to increase the productivity of workers in an economy?

If the aggregate income of an island country is $8 million and income per capita is $5,000,the total population of the island is ________.

Berylia's aggregate production function is Y = A K¹/³ H²/³.What is the contribution of technology to Berylia's GDP if its GDP is $2,000,000,the physical capital stock is 125,000 units,and the total efficiency units of labor is 1,000,000?

The following figure shows two aggregate production functions. -Refer to the figure above.As physical capital stock increases from the level that corresponds to point B to the level that corresponds to point A,what can be said about aggregate production function 2 relative to aggregate production function 1?

Scenario: Tree Country has a population of 18,000 people, of whom two-thirds are part of the workforce. The country's only asset is wood, where K = 18,000. The country only produces wooden furniture. In the figure below, Y stands for GDP, and H equals efficiency units of labor. -Refer to the scenario above.If the country's population increases,new technology in the production of furniture will ________.

What is human capital?

The GDPs of four countries in a continent are equal.The number of people employed in each country is shown in the table below: Which country has the highest income per worker?