Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods
a. Workland has higher productivity and higher real GDP per person than Laborland.
b. Workland has higher productivity but lower real GDP per person than Laborland.
c. Workland has lower productivity but higher real GDP per person than Laborland.
d. Workland has lower productivity and lower real GDP per person than Laborland.
c
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Use the following consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610If a government sector is introduced and a lump-sum tax of $30 billion is imposed at all levels of real GDP, then the values in the consumption column become
A. $426, $466, $506, $546, $586. B. $420, $460, $500, $540, $580. C. $432, $472, $512, $552, $592. D. $430, $470, $510, $550, $590.
Define devaluation and use a figure to show the effect of a currency devaluation on the economy
What will be an ideal response?
The first welfare theorem:
A. tells us that, in a general equilibrium with perfect competition, the allocation of resources is Pareto efficient. B. clarifies how the "invisible hand" of the market guides people toward socially undesirable choices. C. tells us that a general equilibrium with perfect competition is not Pareto efficient. D. is also the only welfare theorem.
The purpose of the Supplemental Security Income program is
A) to provide a minimum income for all households with children. B) to provide a guaranteed minimum income for all Americans. C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.