Suppose that labor productivity in one economy is higher than it is in some other economy. Does that mean that the first economy is using its productive resources better than the second economy? Explain
What will be an ideal response?
Higher labor productivity does not necessarily mean better use of resources. The economy may have more capital per worker, but the productivity of capital may be higher in the second economy. To compare use of resources across economies or over time, the correct measure is total factor productivity.
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A) hedging B) signaling C) internalizing an externality D) sniping
Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?
a. All these countries are classified as high-income countries by the World Bank. b. They are all members of the North American Free Trade Agreement [NAFTA]. c. All these countries are considered developing countries by the World Bank. d. They are collectively the largest trade partners of the U.S. e. They are the five largest exporters of agricultural produce in the world.
A monopolist will hire workers up to the point at which the wage equals the marginal:
A. physical product of labor. B. cost of labor. C. physical product of labor times the price of output. D. physical product of labor times marginal revenue.
If the supply of a good decreases and demand remains constant equilibrium price:
a. Will decrease, and equilibrium quantity will increase b. Will increase, and equilibrium quantity will decrease c. And quantity will decrease d. And quantity will increase