Question 212.5 pts Megan is a landscaper. Which of the following are included in

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Question 212.5 pts

Megan is a landscaper. Which of the following are included in her human capital?

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Question 222.5 pts

A barber shop produces 96 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop’s productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

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Question 232.5 pts

If a Brazilian. company opens a new factory in Peru, it makes

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Question 242.5 pts

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

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Question 252.5 pts

The catch-up effect refers to the idea that

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Question 262.5 pts

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

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Question 272.5 pts

Table 28-1

Labor Data for Aridia

2010

2011

2012

2000

3000

3200

1400

1300

1600

200

600

200

Refer to Table 28-1. The labor force of Aridia

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Question 282.5 pts

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

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Question 292.5 pts

Labor Force Statistics by Age.

Suppose people in the adult population in a small country are classified based on their age.

Labor Force Status

less then 55

55 and older

400,000

100,000

25,000

7,000

600,000

200,000

Refer to Labor Force Statistics by Age.   Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

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Question 302.5 pts

Efficiency wages

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Question 312.5 pts

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Question 322.5 pts

Economics deals primarily with the concept of

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Question 332.5 pts

Market economies are distinguished from other types of economies largely on the basis of

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Question 342.5 pts

To promote good economic outcomes, policymakers should strive to enact policies that

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Question 352.5 pts

An increase in the overall level of prices in an economy is referred to as

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Question 362.5 pts

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Question 372.5 pts

An economic outcome is said to be efficient if the economy is

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Question 382.5 pts

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Question 392.5 pts

A statement describing how the world is

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Question 402.5 pts

her knowledge of landscaping learned in college and her landscaping equipment

Explanation / Answer

Solution :

Q-212: Human capital involves the knowledge, ability, skills and knowledge possessed by a person. If the investment is of/in a tangible item such as equipment, machinery, etc, it makes up a part of physical capital. Thus, for the given question, Megan's knowledge of landscaping is a part of human capital, while her landscaping equipment is a part of physical capital.

So, correct option is B) her knowledge of landscaping learned in college, but not her landscaping equipment.

Q-222: total number of daily haircuts = 96 haircuts

Say, the number of barbers employed by the barber shop = x. So, we have to find the value of 'x'.

If each barber works for 8 hours per day, total number of labor hours by all barbers taken together, in a day = 8*x

1 hour of labor results in 2 haircuts ... (*)

so 8x hours of labor results in = 2*(8*x) = 16*x haircuts (got by multiplying (8*x) on both sides of (*))

So, 16*x = 96, giving us x = 96/16 = 6. Barber shop should employ 6 barbers. Correct option is D).

Q-232): Foreign direct investment involves setting up of a business (or some kind of ownership) by entity based in some foreign country (here, Brazil) in the domestic country (here, Peru). Portfolio investment involves investment by foreign country domestically through bonds and equities (or such financial instruments). Thus, clearly opening of a new factory by Brazilian company in Peru makes a part of foreign direct investment in Peru.

Furthermore, Gross national product (GNP) is the total value of all final goods and services produced by the country's residents anywhere in the world, in an year (thus also, including domestic country's residents' production in foreign and excluding foreigns' production in domestic country). Gross domestic product (GDP) is the total value of final goods and services produced domestically (thus also, including foreigns' production in domestic country  and excluding domestic country's residents' production in foreign country). So, such an investment will make a bigger impact on Peru's GDP than on its GNP, and a bigger impact on Brazil's GNP than on its GDP.

So, correct option is A).

Q-242): *Normal good involves price and demand for a good, which isn't talked about in the question, so this option is straightaway eliminated.*

Knowledge in non-rivalrous, ofcourse, as its use by one won't reduce it's availability to others. Also, knowledge is non-excludable as if people get aware or knowledge of something, they cannot be excluded from using that knowledge and hence, it is open to all. So, this makes knowledge a public good. One might think of it as a societal good but societal/social good is surely some kind of provision that benefits large number of people eg clean air, healthcare. In this context, literacy is a social good, but knowledge is a public good.

So, correct option is A).

Q-252: Catch-up effect is based up on the theory of convergence, meaning that a poor or developing countries grow at a much faster rate (mainly, due to still greater scope of development say by making efficient use of still available resources, etc.) as compared to the developed countries, thereby bringing convergence in their per-capita income levels (such that poor economies catch-up with rich economies), such that ultimately, all reach a steady (convergence point) growth level with equalized (or with atleast minimum differential) in income per capita between such economies. Clearly, so the correct option is B).

Q-262: Total adult population (those capable of working) = 25 million people. Labor force participation rate = 60% or 0.6

So, number of people in labor force (LF) = 0.6*25 = 15 million

Unemployment rate = number of unemployed/number in LF

So, number of unemployed = unemployment rate*number in LF

Number of unemployed = 0.06*15 = 0.9 million. So, correct option is B). 0.9

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