ʺLife Expectancy Is Exceptionally High in Japan

question 225

Multiple Choice

ʺLife expectancy is exceptionally high in Japan. Scores for political freedom and civil liberties approach those of peer countries in Europe...equality of opportunity is extremely weak. The country also possesses one of the longer working weeks.ʺ Japanʹs GDP was estimated to be $4.2 trillion purchasing power parity) and the population was 127.4 million.
ʺDriven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazilʹs commodities and raw materials has produced a sustained economic expansion since 2004, which in turn has led to job creation, wage growth and relatively low inflation. Brazilians report that they control their own lives to a substantial degree.ʺ Brazilʹs GDP was estimated to be $1.7 trillion purchasing power parity) and 190 million in 2006.
-According to the article, we can conclude that the standard of living

• A) might be higher in Japan because it has a higher per capita real GDP but other factors such as Braziliansʹ satisfaction with their lives and economic growth should be considered when determining economic well being.
• B) is higher in Brazil because its citizens feel more control over their lives and have experienced job and wage growth.
• C) is higher in Japan because its GDP is higher.
• D) is higher in Japan because their life expectancy is longer.

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Definitions:

Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of assets due to use, wear and tear, or obsolescence.

Implicit Cost

An indirect, non-payment expense represented by the opportunity cost of utilizing resources in a specific project instead of elsewhere.

Expected Profit Rate

The forecasted return on investment over a specific period, reflecting the potential profitability of a business endeavor.

Profit Rate

The ratio of profits earned to the amount of capital invested over a given period, indicating the efficiency of using capital in production.