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:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and ease of entry and exit.

MC Curve

The graph that shows the relationship between the marginal cost of producing each additional unit and the quantity produced.

Total Profit

The difference between total revenue and total costs, representing the overall earning performance of a business.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogenous product, free entry and exit, and perfect information, leading to firms being price takers.