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- In 2012, Northland had real GDP of $4.21 billion and a population of 2.98 million. In 2013, real GDP was $4.59 billion and population was 2.97 million. Northland's real GDP per person in 2013 was Select one: OA. $132. O B. $1.41. O C. $380. O D. $1,545. O E. $1,413.The Human Development Index measures O A. living standards across various countries. O B. the amount of ethnic welfare and disease in third-world countries. O C. how fairly income is distributed across countries. O D. the relative lifespan and education in third-world countries. The correlation between this index and real income per capita in a country is O A. the correlation between this index and real income per capita is weakly negative. B. countries with higher real income per capita tend to have higher levels of this index. C. no discernable association exists between this index and income per capita. D. a positive association is apparent but only for high-income economies.The process whereby national economies and business systems are becoming deeply interlinked with each other is called O a. Global Linking O b. Globalization O C. Free Trade O d. Technological Advancement
- Households receive a total income of $5 million. Of this, $3.5 milion are wages received for labor services, $1 million are renta payments, and S250,000 are interest payments received What are the costs of production and profits equal to respectively? OA $5 million; $250,000 OB. $4.75 milion, $250.000 OC. $4.75 million; 0 OD. $5 milion; $500,000A company's wages and salaries are part of its value added. Suppose, however, that the cleaning and machinery maintenance that its own employees used to do are now contracted out to specialist firms who come in to do the same work more cheaply. a. What happens to the company's value added when it "contracts out" such work? The company's value added will O A. increase, since the company is saving money by losing employees and spending that money on new clients. B. not change, since the money that the company saves from firing employees is almost equal to what it pays to specialist firms. O C. increase, since the company doesn't have to pay salary to its own employees who used to do this job. O D. decrease, since the company will receive bad reports from fired employees. O E. decrease, since the cleaning and machinery maintenance now become intermediate services purchased from other firms. O F. not change, since now these services are included in value added of specialist firms.Suppose that GDP increases from $8 million to $10 million and output per worker rises from $4,000 to $5,000. In this economy there has been... Select one: O a. An increase in productivity and an increase in the number of employed persons O b. An increase in productivity and a decrease in the number of employed persons O c. An increase in productivity but no change in the number of employed persons O d. A decrease in production. More information is needed to determine the directional change in productivity and employment
- The largest component of gross domestic income is Select one: a. interest payments. O b. wages. O C. profits. O d. taxes.Artica is a nation with a simple economy that produces onlysix goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines. 2009 2010 2011 PRODUCT QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE 180 $ 0.90 200 $ 1.00 200 $ 1.25 Oranges Bicycles 20 85.00 25 90.00 30 95.00 Magazines Paper 175 3.50 150 3,50 150 3.25 675 0.60 600 0.50 630 0.50 Orange juice 40 3.50 50 4.00 60 4.50 Hats 70 10.00 80 12.50 100 15.00 a. Use the production and price information in the table to calculate nominal GDP for 2011. b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?Which of the following would NOT be included in a nation's Gross Domestic Product (GDP)? Select one: O a. In a poker game a student wins $500 that he does not report as income. Ob. A landlord rents an apartment. O c. The government purchases 100 new trucks for the Army. O d. The inventory of paper towels goes up.
- What is meant by the term humancapital? Those who must continually learn and use theoretical and analytical knowledge in their work. O b. The ideas and effort that are put into the production process by individuals. O c. The total number of people employed by a firm. O d. The quantity of labour employed through employment agencies. The accumulation of all skills and knowledge acquired by individuals.3. (a) We saw in Chapter 4 that the TFP for Brazil is about 0.43 (=43%). Briefly and clearly explain what this number 0.43 tells us. O TFP refers to Total Factor Productivity of a nation, and it measures how effective is an economy by applying all factors of production. At the given question, Ithe 0.43 TFP for Brazil refers to the quantity produced using 100% of inputs. (b) Relative to the USA, Argentina's y = 0.30 and k = 0.18. Calculate its TFP (Ā) using the production model we studied (round to the 2nd decimal place). y=Ak¹/3 0.30= A*(0.18)¹3 A= 3.33333 A=3.33 4. (a) Explain clearly the job separation rates and the job finding rate f in the bathtub model of unemployment. Write out the formula for each rate. O In the bathtub model, the separation rate captures the number of employed people who lose their job. While Job finding rate captures theEconomists refer to the measure of GDP, after the effects of inflation have been removed, as Select one: O a. potential GDP. b. real GDP c. real per capita GDP.