Exam 4: Sellers and Incentives,aggregate Incomes

The total number of workers in two different countries is equal. However, workers in Country A are three times more productive than workers in Country B. Which of the following is true in this case?

The figure below shows the marginal cost (circles) and the average variable cost (crosses) of a firm in a competitive market. The firm always makes the choice to maximize its profit. -Refer to the figure above. If the market price of the product is $3,400, what is the firm's producer surplus?

The figure below shows cost curves of a firm in a competitive market. The firm always makes the choice to maximize its profit. -Refer to the figure above. If the market price of the product is $3.25, what is the firm's revenue?

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 H_R, while the labor supply in Purple Country is H_P. -Refer to the scenario above. Population growth is relatively slower in Purple Country than in Red Country, but increased teacher salaries have helped increase high school and college graduation rates. Over time, how will output and total efficiency units of labor likely change in Purple Country?

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?

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. Suppose Country A passes a law that requires all workers to complete repeated safety workshops. One year after the law was passed, workers are on average 5 percent less productive. Workers in Country B continue to produce at the same rate as the year before. During the same year, the population in Country A and in Country B increases by 2 percent. Consequently, 1 year after Country A passed the new law, ________.

If the number of workers in a country is 12,000 and its income per worker is $380, its GDP is ________.

The following table shows the output and cost figures for a bakery. Calculate the missing values in the table.

Two countries, Rhodia and Rubium, have identical production functions in the form Y = A × K^0.25 × H^0.75, 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. Both countries have the same amount of physical capital stock and use the same technology. However, the total efficiency units of labor in Rhodia is higher than that in Rubium. Which of the following is likely to be true in this case?