Exam 6: Aggregate Incomes

Which of the following is an alternative measure of exchange rate proposed by The Economist magazine?

The GDP of a small country with a population of 200,000 is $56,000,000.The income per capita in the country is ________.

Country A has a smaller stock of capital than Country B,but the supply of labor in both countries is equal.What does this imply?

Which of the following should be used to compare the incomes of countries with huge differences in the cost of living?

Country A's income per capita is higher than that of Country B.Country A is likely to have ________.

The Human Development Index combines ________,life expectancy,and measures of education to measure the standard of living in a country.

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

The following table compares some attributes of workers in South Korea, Spain, and the United States. -Refer to the table above.If workers in Spain and South Korea had access to the level of technology available in the United States,what might we expect with respect to income per worker?

The income per worker in a country increases if ________.

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.How will a one-unit increase in the efficiency units of labor change output in Red Country relative to Purple Country?

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.As inventors in Purple Country develop and implement new software that helps all citizens complete their work faster,total output in Purple Country will ________.

The average years of schooling of workers in Argonia has increased.Which of the following is likely to be true if all other variables remain unchanged?

A country has an aggregate production function of the form Y = A × K¹/³ × H²/³,where Y denotes total output,A denotes the level of technology,K denotes the physical capital stock,and H denotes the efficiency units of production.Which of the following is likely to happen if the physical capital stock and the efficiency units of labor available to the country increase by 10 percent over a span of 5 years,while the state of technology used in the country remains the same?

Suppose that 50 percent of the national income in an economy goes to labor.If this economy has a Cobb-Douglas production function,________ of its national income should go to capital.

Explain the concept of PPP.

Which of the following causes an economy to move upward along the aggregate production function?

Scenario: Country X has 1,000 workers. The country's aggregate production function is YX = 1.5 KX²/³ HX¹/³, where KX = 1,000,000 and HX = 2,500,000. -Refer to the scenario above.Assume the country's human capital per worker increases and total efficiency units of labor now equal 2,000,000.How could this be the case?

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.Assume Country A initially has a population of 10,000 people.If its population grows by 50 percent but its GDP remains constant,how will the standard of living change in Country B?

Scenario: Country X has 1,000 workers. The country's aggregate production function is YX = 1.5 KX²/³ HX¹/³, where KX = 1,000,000 and HX = 2,500,000. -Refer to the scenario above.Country Y has exactly as many workers as Country X.Its total efficiency units of labor are equal to 3,000,000.This could imply that ________.

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.Holding physical capital stock constant,Sweetland's aggregate production function lies above Sourland's production function.This implies that costs of producing the same amount of output ________.