Exam 3: Productivity, output, and Employment

Your professor has one hundred final exams to grade,so he hires you to help him grade them,paying you twice the amount you would normally receive because few students are willing to work during final exams week.You take the job.This would be an example of

The marginal product of labour

Empirical evidence for Canada and other countries suggests that permanent increases in the real wage cause workers to

In December 2002,Kwaki had a labour force of 14,757,000,employment of 13,097,000,and there were 7,994,000 people not in the labour force (all numbers rounded to the nearest 1000). a.Calculate the unemployment rate. b.Calculate the participation rate. c.Calculate the employment ratio.

Zowie! Surfboards has the following production function: Number of Workers Number of Surfboards Produced 1 12 2 21 3 29 4 36 5 42 If surfboards sold for $30 and the nominal wage rate was $200,how many workers would the firm employ?

What is the employment ratio (in percentage terms)if there are 17 million people employed,2.5 million people unemployed,and 3.5 million not in the labour force?

Explain frictional,structural,natural,and cyclical unemployment.What is the difference between the natural and the cyclical unemployment?

Compare the effects of the two 1973 and 2007 oil price shocks on the Canadian labour market,output and price level.Why the effects of these two seemingly similar shocks are different?

What is the participation rate if there are 125 million people in the labour force,100 million people employed,and 25 million not in the labour force?

An increase in recent wage inequality can be explained by

How would each of the following events affect the level of employment and the real wage rate? a.A tremendous boom occurs in the stock market,increasing people's wealth by $100 billion overnight. b.A major government loan-guarantee program goes bust,losing $500 billion.To pay off the loss,the government announced that tax rates will rise 30% in the future. c.A nuclear mishap contaminates all auto plants in the Windsor area,destroying their capital. d.Medical science cures the common cold,causing fewer work days lost to illness,thus greatly increasing labour productivity.

Joe lost his job in a garment factory because of competition from overseas manufacturers.Joe is an example of

Expected future real wages would cause

The Grungo Company has the following production function: Number of Workers Number of Grungos Produced 0 0 1 10 2 19 3 26 4 31 5 34 If the real wage rate is 6,how many workers will the company hire?

The more permanent an employee perceives an increase in her real wages to be

Compare and contrast the likely income and substitution effects on labour supply of a temporary real wage increase compared to a permanent rise in the real wage.

Your boss has told you that you will receive an increase in your salary next year.In response to this news,you would reduce your labour supply because

A profit-maximizing firm would hire more employees if

Frictional unemployment arises when

The country of Timbuktoo is introducing a minimum wage for the first time in its history.It is above the market-clearing wage rate for unskilled workers.The effect of the minimum wage would be to