Exam 6: Aggregate Incomes

Suppose the price of an iPad is $500 in the United States and 30,000 rupees in India.If an iPad is representative of the average prices in a country,then the price of a basket of goods worth $1 in the United States costs ________ rupees in India.

Which of the following is likely to happen if there is an increase in entrepreneurial activity in an economy?

The total efficiency units of labor is obtained by ________.

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.A labor strike will disproportionally affect output in ________.

An international agency uses the prices of iPads in different countries to compute the exchange rate between the currencies of these countries.Which of the following measures follows a similar approach?

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.Despite all inputs being equal in Sweetland and Sourland,Sweetland has many more companies competing against one another.What can we say about its GDP relative to Sourland's GDP?

The following figure shows two aggregate production functions. -Refer to the figure above.What does the slope of the aggregate production function 2 between the origin and point A imply?

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.Some people in Sourland have been pushing for better protection of property rights.Critics have pointed out that companies would likely have to incur high costs to meet new standards.Such a reform could ________.

Suppose production in an economy is represented by a Cobb-Douglas production function.If each worker in the economy becomes more productive,while the number of workers in the economy,the physical capital stock,and the state of technology remain unchanged,________.

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 workers in Country A on average work 10 percent more than workers in Country B.What would happen to GDP per capita in Country B if workers in Country B were required to increase their work by 10 percent?

In Lutheria,there are 10,000 people in the age group of 0-14 years,30,000 people are employed,and 2,000 people are unemployed.Lutheria's GDP,measured in luthers,is 1 billion.Income per worker in Lutheria is ________ luthers.

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.Which of the following is likely to happen if physical capital stock increases by 10 percent and efficiency units of labor increase by 10 percent over the next 10 years in Country A?

The following table shows economic data for two countries. -Refer to the table above.When comparing the PPP-adjusted GDP per capita in Countries A and B,what can we say about the difference in standard of living between the two countries?

Scenario: Two Countries, X and Y, have identical production functions. Country X's GDP is about 8,000,000 and Country Y's GDP is about 3,000,000. Additionally, technology factors are AX = 3 and AY = 10 for country X and Y, respectively. There are 125 workers in Country A and 200 workers in Country B. -Refer to the scenario above.If we use Country X's technology term to calculate Country B's hypothetical GDP per capita,the difference in GDP per capita between Country A and Country B ________.

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.Why would an increase in competition in Farm Country increase productivity?

Two countries,Baltonia and Polonia,have aggregate production functions in 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 number of efficiency units of production.Both countries have the same number of efficiency units of labor and use the same technology.However,Baltonia has a smaller physical capital stock than Polonia does.Which of the following is likely to be true in this case?

Which of the following is a good measure of the productivity of employed people in a country?

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.Which of the following statements has to be true if we plot the relationship between income per capita (x-axis)and the Human Development Index (y-axis)?

The GDP of a country is $500,000.If its income per worker is $100,the size of its employed labor force is ________.

The following table compares some attributes of workers in South Korea, Spain, and the United States. -Refer to the table above.From it we can infer that ________.