Question

America and Country X have the same levels of consumption, investment, and government purchases, but Country...

America and Country X have the same levels of consumption, investment, and government

purchases, but Country X sells twice as many exports as buys twice as many imports

as America. Which country must have a larger GDP?

1. America
2. Country X
3. The GDP of America must equal the GDP of country B
4. The answer depends on whether America has positive or negative net exports

A multiple-choice question with one possible answer.(Required)

On average, Japanese workers have lower hourly productivity and work fewer hours

than their Italian counterparts, yet Japan has a higher GDP per capita than Italy. This is because

1. Japan has a larger population than Italy
2. There are statistical discrepancies in the two nations’ data collection systems
3. Japan exports more goods than Italy
4. Japan has a higher labor force participation rate and employment rate

A multiple-choice question with one possible answer.(Required)

Suppose the economy has TFP = 10, there are 400 hours worked, and 9 unit of capital and the Cobb-Douglas production function is (note: 91/2 =3, 4001/2=20).

Output is currently

1. 36,000
2. 1,800
3. 600
4. 12,000

A multiple-choice question with one possible answer.(Required)

Suppose the economy has TFP = 10, there are 400 hours worked, and 9 unit of capital and the Cobb-Douglas production function is (note: 91/2 =3, 4001/2=20).

The marginal product of labor is

1. 1.25
2. 3.8
3. 0.75
4. 30

A multiple-choice question with one possible answer.(Required)

Suppose the economy has TFP = 10, there are 400 hours worked, and 9 unit of capital and the Cobb-Douglas production function is (note: 91/2 =3, 4001/2=20).

If total factor productivity grows by 1% per year while capital and labor each grow by

2% per year, then output grows by

1. 3% per year
2. 5% per year
3. 4% per year
4. 1.5% per year

A multiple-choice question with one possible answer.(Required)

If both imports (M) and exports (X) are nonzero, which of the following accurately reflects a national income accounting measure?

1. 1.aggregate supply = Y + M
2. 2.aggregate demand = C + I + G + X – M
3. 3.aggregate supply = Y – X + M
4. 4.Y = C + I + G + X

A multiple-choice question with one possible answer.(Required)

Suppose that 30% of a country’s population is institutionalized in schools, hospitals,

or prisons; 10% are full-time homemakers; another 10% are retired; 45% of the population is employed either full-time or part-time; and 5% of the population is unemployed and seeking work. Then the unemployment rate is

1. 5%
2. 25%
3. 10%
4. 15%

Q1) The answer is (d) The answer depends on whether America has positive or negative net exports

If the net exports are positive in America, then X has a higher GDP

If the net exports are negative in America, then X has a lower GDP

If the net exports are 0 in America, then X has the same GDP

Q2) The answer is (d) Japan has a higher labor force participation rate and employment rate. Fue to higher employment and labor force participation rate, the output can be higher even with low productivity.

(a) is false as large population would lead to a lower GDP per capita

(b) is wrong as the data collection systems are reliable.

(c) is wrong as Italy is a much larger expoter than Japan.

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