Suppose that in Brazil total annual output is worth $600 million and people work 30 million hours. In Peru total annual output is worth $800 million and people work 50 million hours. Productivity is higher
a. in Brazil. Most variation in the standard of living across countries is due to differences in productivity.
b. in Brazil. Differences in productivity explain very little of the variation in the standard of living across countries.
c. in Peru. Most variation in the standard of living across countries is due to differences in productivity.
d. in Peru. Differences in productivity explain very little of the variation in the standard of living across countries.
a
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Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)
A) increases by $1 billion. B) increases by $90 million. C) decreases by $1 billion. D) decreases by $10 million.
Underwriting involves
A) insuring the life or health of individuals. B) guaranteeing a price for new capital to the issuing firm. C) selling stock more cheaply than conventional stockbrokers. D) issuing stock and using the proceeds to buy bonds.
If featherbedding raises the price of output produced by the union workers, it
a. increases employment at the firm and in the industry b. decreases employment at the firm and in the industry c. increases employment at the firm but may decrease it in the industry d. decreases employment at the firm and increases it in the industry e. increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment
An example of an investment is
A. a restaurant placing otherwise idle money in an interest-bearing savings account. B. a sock company repurchasing its own shares. C. a delivery company adding more vehicles its fleet. D. a pencil factory that can produce consumer and business goods.