Consider a Small Economy with Real GDP of $1 Billion

question 31

Multiple Choice

Consider a small economy with real GDP of $1 billion and the total number of hours worked equal to 5 million.Which of the following is the best measure of labour productivity in this economy?

• A)real GDP per hour worked = $20
• B)real GDP per employed worker = $20
• C)real GDP per hour worked = $200
• D)real GDP per employed worker = $200
• E)Not able to determine from the information provided

Identify the role and limitations of government in a capitalist economy.

Recognize the ideologies and outcomes associated with communism as proposed by Marx and Engels.

Identify the ownership of resources in different economic systems.

Understand the historical economic reforms and their impact on nations such as China and the former Soviet Union.

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Definitions:

Ceteris Paribus

A phrase in Latin that translates to "with all other conditions remaining the same," employed to examine the impact of a single variable while holding others constant in economic studies.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available and sought after at the market's balance price.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.