International comparisons of per capita GDP may not reflect the standard of living because __________.
a. currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities.
b. people in some countries enjoy poverty and do
not mind a lack of access to medicine, education, nutritious food, and safe drinking water.
c. markets do not exist in less-developed countries.
d. None of the answers above are correct.
a
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Which of the following statements is true?
A) The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices. B) The marginal revenue of a monopolistically competitive firm will be positive at high prices and negative at low prices. C) Because the demand curve for a monopolistically competitive firm is downward-sloping its marginal revenue will be negative. D) The marginal revenue of a monopolistically competitive firm will be always be positive.
The United States is academically unique in having so many
a. trade schools. b. colleges of arts and sciences. c. business schools. d. fine arts schools.
Refer to the table above. Country A has absolute advantage in
A) Good X. B) Good Y. C) Neither X nor Y. D) Both X and Y.
Evren wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts (K = l, r = 500). He must pay unionized donut bakers a monthly salary of $400 each
He projects his monthly production function to be Q = 5KL where Q is tons of donuts. a. With the current level of capital, what is the marginal product of labor? Is the marginal product diminishing? Explain. b. If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)? c. Derive Evren's short-run cost function with K=1. d. Derive the marginal cost curve from your answer to c. and show the relationship between the marginal cost and marginal product of labor.