MCQ1. (2 POINTS) The following table shows the nominal GDP (in 2015 US dollars)
ID: 1131965 • Letter: M
Question
MCQ1. (2 POINTS) The following table shows the nominal GDP (in 2015 US dollars) and the population of Italy in 2012 and 2013 (source: The World Bank). Based on this information which of the following statements regarding GDP per capita is correct? 2012 $ 2,074 631,555.455 2013 2,133,539,300,230 60,233,948 GDP Population 59,539,717 Select one answer a. The % change in nominal GDP was greater than the % change in per capital GDP b. The % change in nominal GDP was lower than the % change in per capital GDP C. The increase in the population was enough to offset the increase in the GDP for the GDP per capita to decrease between 2013 and 2014. The GDP per capita increased by 163% between 2012 and 2013. d. MCQ2. (2 POINTS) The following diagram depicts the production function of the farmers, where diminishing average product of labour is assumed. If you know that for 2,800 farmers the grain output is 894,000kg, then which of the following is/are correct? 900 700 600 500 400 300 200 o 100 00 800 1,200 100 2000 2.400 28 Number of farmers Select one answer a. The marginal product of labour when the labour input is 800 is 625. b. The average product of labour when the labour input is 1600 is 625 c. If the production function curve is an upward-sloping straight line, then the marginal product of labour is not diminishing. d. Th e graph shows that initially there is an economy of scale: for example, going from one mer to two, the average output increases as they efficiently share the workloadExplanation / Answer
Answer
1)
The correct answer is (a) % change in Nominal GDP was greater than % change in per capita GDP.
% Change in Nominal GDP = ((GDP (2013) - GDP(2012)/GDP(2012))*100
= 2.83%
GDP per Capita 2013 = GDP (2013)/Population(2013) = 35420.877
GDP per Capita 2012 = GDP (2012)/Population(2012) = 34844.498
Hence,
% Change in Per capita GDP = ((35420.877 - 34844.498)/34844.498)*100 = 1.654%
Hence % change in Nominal GDP was greater than % change in per capita GDP.
Hence The correct answer is (a) % change in Nominal GDP was greater than % change in per capita GDP.
2)
The correct answer is (c) If production Function is an upward sloping straight line then Marginal Product of Labor is not diminishing.
Marginal Product of Labor is defined as the change in output, when Labour is increased by 1 unit.
Mathematically, Marginal Producr of Labor = dQ/dL.
If Production Function(Q) is a straight line then dQ/dL = Constant as slope of Straight line is Same at all point.
Hence, Marginal Product of Labor is constant when Production Function is a straight line.
Hence the correct answer is (c) If production Function is an upward sloping straight line then Marginal Product of Labor is not diminishing.
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