Countries with small amounts of capital per worker tend to have ______ levels of real GDP per person and ___ levels of average labour productivity.

A. high; high
B. high; low
C. low; low
D. low; average


Answer: C. low; low

Economics

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Indicate whether the statement is true or false

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Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?

A) a decrease of more than $80 billion B) an increase of less than $80 billion C) an increase equal to $80 billion D) an increase of greater than $80 billion E) a decrease of less than $80 billion

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Wheat is being grown and sold at the lowest possible average cost. Which of the following does this situation illustrate?

a. Productive efficiency b. Market elasticity c. Allocative efficiency d. Perfect competition

Economics

The demand curve for a monopolistic competitor slopes downward because

a. demand drops to zero after a slight price increase. b. there are close but not perfect substitutes for the product. c. customers have no loyalty to the product. d. the product is undifferentiated.

Economics