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:

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Barrier to Entry

Factors that prevent or hinder companies from entering a particular market, which might include high startup costs, strict regulations, or strong competition.

Pricing Strategy

A plan or approach used by businesses to set the prices for their products or services based on various factors like market demand, competition, and cost of production.

Socially Optimal Price

The price of a product that results in the most efficient allocation of an economy’s resources and that is equal to the marginal cost of the product.