The Following Table Compares Some Attributes of Workers in South

question 59

Multiple Choice

The following table compares some attributes of workers in South Korea, Spain, and the United States.

-Refer to the table above.Assume students in Spain not only experience longer schooling than do students in South Korea,but also higher quality schooling.A measure that calculates the income per worker if technology in a country were at the United States' level would likely ________.

• A) overestimate the technology difference between Spain and South Korea
• B) underestimate the technology difference between Spain and South Korea
• C) overestimate the GDP per capita difference between Spain and South Korea
• D) underestimate the GDP per capita difference between Spain and South Korea

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Definitions:

Disposable Income

The amount of money available for savings or expenditure after all taxes and social security fees have been deducted.

Induced Consumption

Consumption that changes in response to changes in income or wealth, as opposed to autonomous consumption, which does not change when income changes.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been deducted.

Average Propensity

The average tendency of an entity (such as a household) to spend a portion of income; can pertain to consumption or saving.