Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania. You might conclude that
a. Polish firms are faced with stricter government regulations than Romanian firms.
b. total income is divided among fewer workers in Poland since it has a smaller labor force than Romania.
c. Romania's climate allows for longer growing seasons and therefore Romania can produce large quantities of grain and other crops.
d. productivity in Poland is higher than in Romania.
d
You might also like to view...
An "aggregate":
A. is too large to analyze using standard macroeconomic theories. B. is the primary unit of analysis in microeconomics. C. treats a single unit as if it were a collection of specific units D. treats a collection of specific units as one unit.
Goods produced in the U.S. are made more competitively priced when
a. the dollar appreciates. b. the dollar depreciates. c. the exchange rate is fixed. d. the money supply is decreased.
In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives
What will be an ideal response?
When the public perceives that a monetary expansion will be temporary, what happens to nominal interest rates in the short run?
a. They will rise. b. They will overshoot their target. c. They will fall. d. They will be unchanged.