If the Share of Population Employed in Two Countries Is

question 34

Multiple Choice

If the share of population employed in two countries is the same, average living standards will be higher in the country with:

• A)the smaller population.
• B)the larger population.
• C)higher average labor productivity.
• D)lower average labor productivity.

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Definitions:

Agreed-upon

Something that has been mutually accepted or concurred by all parties involved.

LIBOR

An average interest rate calculated through submissions of interest rates by major banks in London, used as a benchmark for short-term interest rates around the world.

Eurodollars

U.S. dollars deposited in banks outside the United States, often used for international transactions.

Forward Trade

A financial agreement to buy or sell an asset at a predefined price on a specified future date, commonly used in foreign exchange and commodities markets.