Suppose the Average Income of a Citizen of Poland Is

question 58

Multiple Choice

Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania.You might conclude that

• A)Polish firms are faced with stricter government regulations than Romanian firms.
• B)total income is divided among fewer workers in Poland since it has a smaller labor force than Romania.
• C)Romania's climate allows for longer growing seasons and therefore Romania can produce large quantities of grain and other crops.
• D)productivity in Poland is higher than in Romania.

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Definitions:

Current Consumption

The amount of goods and services consumed by individuals or households in the present period.

Marginal Utility

Additional contentment or usefulness achieved through the use of one more unit of a good or service.

Utility

In the field of economics, the complete pleasure derived from the consumption of a product or service.

Budget

A projection of revenues and expenses for a specified timeframe.