Countries with a low standard of living have low levels of total factor productivity. List 5 reasons that account for the low levels of total factor productivity
What will be an ideal response?
1. lack of investment in research and development
2. low quality of labor from low investment in education
3. government institutions that do not protect private property and that discourage investment
4. geography that makes trade difficult or makes diseases more prevalent
5. a lack of financial institutions that allow funds to flow from firms with profitable investment projects
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If you are running a winery and you need one bottle for every 750ml of wine, then your production function
A) is inefficient. B) is considered "fixed-proportion." C) will have a diminishing marginal rate of technical substitution. D) has downward-sloping, straight line isoquants.
If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force?
A) 1 million B) 20 million C) 475 million D) 481 million