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One Way to Measure a Country's Labor Endowment Is to Adjust

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One way to measure a country's labor endowment is to adjust its share of the world's population using wages as a measure for differences in labor productivity and then compare this adjusted share to the country's share of world GDP. Use the hypothetical data in the following table to compute a country's share of world GDP, its share of world population, and its share of "effective" labor, as measured by wages. One way to measure a country's labor endowment is to adjust its share of the world's population using wages as a measure for differences in labor productivity and then compare this adjusted share to the country's share of world GDP. Use the hypothetical data in the following table to compute a country's share of world GDP, its share of world population, and its share of  effective  labor, as measured by wages.


Definitions:

Taxable Personal Income

The portion of an individual's earnings that is subject to taxation, after accounting for deductions and exemptions.

Proprietary Income

Income generated from owning a business or holding exclusive rights to a product or service.

Government-Run Businesses

Enterprises or organizations that are owned and operated by the government rather than by private individuals or other businesses.

Personal Income Tax

A tax levied on the taxable income of individuals, households, and unincorporated firms.

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