Scenario: Red Country and Purple Country Have Identical Aggregate Production

question 121

Multiple Choice

Scenario: Red Country and Purple Country have identical aggregate production functions. The amount of physical capital stock available to each country is equal. Labor supply in Red Country is HR, while the labor supply in Purple Country is HP.

-Refer to the scenario above.Population growth is relatively slower in Purple Country than in Red Country,but increased teacher salaries have helped increase high school and college graduation rates.Over time,how will output and total efficiency units of labor likely change in Purple Country?

• A) Output will increase faster and total efficiency units will increase slower than in Red Country.
• B) Output may or may not increase faster and total efficiency units will increase faster than in Red Country.
• C) Output will increase slower and total efficiency units may or may not increase faster than in Red Country.
• D) Output may or may not increase faster and total efficiency units may or may not increase faster than in Red Country.

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Definitions:

Self-esteem

An individual's subjective evaluation of their own worth or the confidence in their own abilities and value.

Individualist Cultures

Cultures that prioritize the autonomy and personal goals of the individual, often at the expense of collective goals.

Collectivist Cultures

Cultures that prioritize the group over the individual, emphasizing interdependence, cooperation, and social harmony.

Esteem-enhancing Feedback

Positive feedback aimed at boosting an individual's self-esteem and encouraging positive self-perception.