In a recent year GDP per capita in the United States was much higher than GDP per capital in France. Why would there be such a large difference in GDP per capital between two rich leader countries?
What will be an ideal response?
The explanation has to do with differences in the characteristics of the work force in the United States and France. U.S. workers spend substantially more time working than do French workers for two reasons. First, more of the U.S. population is employed than is the French population. Second, U.S. workers who are employed work longer hours than French workers. These two differences contribute to a sizable difference in the labor supply in the United States compared with France, and thus accounts for the sizable difference in per capital GDP in the two leader countries.
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Which of the following statements concerning the relationships among the firm's total cost functions is false?
A) TC = TFC + TVC B) TVC = TFC - TC C) TFC = TC - TVC D) TC = TFC when output = 0.
Assume the government decides to decrease taxes and to finance the expected budget deficit with borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real goods market with aggregate supply shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the right. d. Start the analysis in the real credit market with demand for real credit shifting to the left. e. Start the analysis in the real credit market with demand for real credit shifting to the right.
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries?
A. Jim B. Sheila C. Sheila and Jim D. Neither of them
Recall the Application about the salaries paid in Major League Baseball to answer the following question(s). Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.Recall the Application. On average, free agents in Major League Baseball tend to be paid a salary ________ their marginal revenue product.
A. significantly higher than B. significantly lower than C. close to D. unrelated to