Question

An economy with better technology is likely to: A) have lower levels of human capital. B)...

An economy with better technology is likely to:

A) have lower levels of human capital.

B) use more labor than capital.

C) achieve higher productivity.

D) have less capital stock.

184) An aggregate production function:

A) shows the relationship between a country's GDP and its factors of production.

B) shows various quantities of two goods that can be produced at a given cost.

C) shows various combinations of labor and capital that can be used to produce a particular good.

D) shows the relationship between a country's output and its price level.

185) Total efficiency units of labor in an economy increases if ________.

A) the amount of capital available to each worker diminishes

B) the average number of hours worked by each worker decreases

C) each worker earns a lower wage

D) each worker becomes more productive

186) The total number of workers in two different countries are equal. However, each worker in Country A is three times more productive than a worker in Country B. Which of the following is true in this case?

A) The capital stock in Country B is three times more than the capital stock in Country A.

B) The total efficiency units of labor in Country A is one-third of the total efficiency units of labor in Country B.

C) The total efficiency units of labor in Country B is six times more than the total efficiency units of labor in Country B.

D) The total efficiency units of labor in Country A is three times more than the total efficiency units of labor in Country B.

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Homework Answers

Answer #1

1. An economy with better technology is likely to achieve higher productivity. Hence,option(C) is correct.

2. Aggregate production function shows the relationship between a country's GDP and its factors of production. Hence,option(A) is correct.

3. Total efficiency units of labor in an economy increases if each worker becomes more productive. Hence, option(D) is correct.

4. This means that the total efficiency units of labor in Country A is three times more than the total efficiency units of labor in country B. Hence, option(D) is correct.

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