Suppose That in Chile Total Annual Output Is Worth $600

question 174

Multiple Choice

Suppose that in Chile total annual output is worth $600 million and people work 70 million hours.In Argentina total annual output is worth $450 million and people work 40 million hours.Productivity is higher

• A) in Chile.Most variation in the standard of living across countries is due to differences in productivity.
• B) in Chile.Differences in productivity explain very little of the variation in the standard of living across countries.
• C) in Argentina.Most variation in the standard of living across countries is due to differences in productivity.
• D) in Argentina.Differences in productivity explain very little of the variation in the standard of living across countries.

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Definitions:

Indifference Curves

Graphs representing combinations of two goods that provide an individual with equal levels of satisfaction or utility, showing consumer preferences.

Marginal Utility

The extra pleasure or benefit derived from consuming an additional unit of a product or service.

Corner Solution

A situation in optimization problems where the solution lies at the boundary or corner of the feasible set, often due to constraints.

Marginal Utility

Marginal utility refers to the additional satisfaction or benefit one receives from consuming an additional unit of a good or service.