Top Posters
Since Sunday
d
4
N
3
3
R
3
k
3
o
3
Z
3
j
3
s
3
d
3
J
3
1
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
primewire primewire
wrote...
Go to Answer
Posts: 145
Rep: 0 0
A year ago
Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.


Refer to the scenario above. Assume workers in Country A on average work 10 percent more hours for their equivalent income than workers in Country B. What would happen to GDP per capita in Country B if workers in Country B were required to increase their work by 10 percent for their equivalent income?

▸ The difference between GDP per capita in Countries A and B would increase.

▸ Country B's GDP per capita would remain constant.

▸ The difference between GDP per capita in Countries A and B would decrease.

▸ Country B's GDP per capita would be equal to GDP per capita in Country A.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
Read 47 times
1 Reply
Replies
Answer verified by a subject expert
jasmjasm
wrote...
#1
Posts: 137
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

primewire Author
wrote...

A year ago
You make an excellent tutor!
hannahspillett
wrote...

Yesterday
Thanks
patod1
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1431 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1235
  
 222
  
 364
Your Opinion
Which country would you like to visit for its food?
Votes: 262
Previous poll results: Do you believe in global warming?