Question 1

An adverse supply shock would

Accepted Answer

A) shift the production function up and decrease marginal products at every level of employment. 
B) shift the production function down and decrease marginal products at every level of employment. 
C) shift the production function down and increase marginal products at every level of employment. 
D) shift the production function up and increase marginal products at every level of employment. 
A) shift the production function up and decrease marginal products at every level of employment. 
B) shift the production function down and decrease marginal products at every level of employment. 
C) shift the production function down and increase marginal products at every level of employment. 
D) shift the production function up and increase marginal products at every level of employment.

Question 2

The income effect of a higher real wage on the quantity of labor supply is the

Accepted Answer

A) idea that workers feel psychologically wealthier when wages are higher, so they work more. 
B) effect that income must rise when wages rise. 
C) tendency of workers to supply more labor in response to becoming wealthier. 
D) tendency of workers to supply less labor in response to becoming wealthier. 
A) idea that workers feel psychologically wealthier when wages are higher, so they work more. 
B) effect that income must rise when wages rise. 
C) tendency of workers to supply more labor in response to becoming wealthier. 
D) tendency of workers to supply less labor in response to becoming wealthier.

Question 3

Research on labor supply generally shows that

Accepted Answer

A) labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage. 
B) labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage. 
C) labor supply rises in response to both a temporary and a permanent increase in the real wage. 
D) labor supply falls in response to both a temporary and a permanent increase in the real wage. 
A) labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage. 
B) labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage. 
C) labor supply rises in response to both a temporary and a permanent increase in the real wage. 
D) labor supply falls in response to both a temporary and a permanent increase in the real wage.

Question 4

Because of diminishing marginal productivity

Accepted Answer

A) the labor supply curve is not vertical. 
B) nominal wages are sticky in a downward direction. 
C) the labor demand curve is negatively sloped. 
D) households save only a small share of their income. 
A) the labor supply curve is not vertical. 
B) nominal wages are sticky in a downward direction. 
C) the labor demand curve is negatively sloped. 
D) households save only a small share of their income.

Question 5

Zowie! Surfboards has the following production function.  
If surfboards sell for $30 and the nominal wage rate is $200,how many workers should the firm employ?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
A) 2 
B) 3 
C) 4 
D) 5

Question 6

The relationship between output and employment is known as

Accepted Answer

A) the Phillips curve. 
B) the Beveridge curve. 
C) the Diamond paradox. 
D) Okun's Law. 
A) the Phillips curve. 
B) the Beveridge curve. 
C) the Diamond paradox. 
D) Okun's Law.

Question 7

If Jeff's wage rate rises,he decides to work fewer hours.From this,we can infer that

Accepted Answer

A) for Jeff, the substitution effect is greater than the income effect. 
B) for Jeff, the substitution effect is equal to the income effect. 
C) for Jeff, the substitution effect is less than the income effect. 
D) Jeff is a nitwit. 
A) for Jeff, the substitution effect is greater than the income effect. 
B) for Jeff, the substitution effect is equal to the income effect. 
C) for Jeff, the substitution effect is less than the income effect. 
D) Jeff is a nitwit.

Question 8

According to Okun's law,if output grew 1% and full-employment output rose 3%,what would be the change in the unemployment rate?

Accepted Answer

A) -2 percentage points 
B) -1 percentage point 
C) 1 percentage point 
D) 2 percentage points 
A) -2 percentage points 
B) -1 percentage point 
C) 1 percentage point 
D) 2 percentage points

Question 9

The Upstart Company has the following production function.  
If the company hires 4 workers,which of the following could be the real wage rate?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 10

Over the past 100 years,what has happened to the average workweek in the U.S.manufacturing industry? Why has this occurred? What are the implications for the size of the income and substitution effects?

Accepted Answer

The average workweek in manufacturing ha

Question 11

Suppose the economy's production function is Y = AK0.3N0.7.If K = 2000,N = 100,and A = 1,then Y = 246.If K rises by 10%,and A and N are unchanged,by how much does Y increase?

Accepted Answer

A) 30% 
B) 10% 
C) 6% 
D) 3% 
A) 30% 
B) 10% 
C) 6% 
D) 3%

An adverse supply shock would

The income effect of a higher real wage on the quantity of labor supply is the

Research on labor supply generally shows that

Because of diminishing marginal productivity

Zowie! Surfboards has the following production function. If surfboards sell for $30 and the nominal wage rate is $200,how many workers should the firm employ?

The relationship between output and employment is known as

If Jeff's wage rate rises,he decides to work fewer hours.From this,we can infer that

According to Okun's law,if output grew 1% and full-employment output rose 3%,what would be the change in the unemployment rate?

The Upstart Company has the following production function. If the company hires 4 workers,which of the following could be the real wage rate?

Over the past 100 years,what has happened to the average workweek in the U.S.manufacturing industry? Why has this occurred? What are the implications for the size of the income and substitution effects?

Suppose the economy's production function is Y = AK^0.3^N^0.7^.If K = 2000,N = 100,and A = 1,then Y = 246.If K rises by 10%,and A and N are unchanged,by how much does Y increase?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Consumption, saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 3: Productivity, output, and Employment

An adverse supply shock would

The income effect of a higher real wage on the quantity of labor supply is the

Research on labor supply generally shows that

Because of diminishing marginal productivity

Zowie! Surfboards has the following production function. If surfboards sell for $30 and the nominal wage rate is $200,how many workers should the firm employ?

The relationship between output and employment is known as

If Jeff's wage rate rises,he decides to work fewer hours.From this,we can infer that

According to Okun's law,if output grew 1% and full-employment output rose 3%,what would be the change in the unemployment rate?

The Upstart Company has the following production function. If the company hires 4 workers,which of the following could be the real wage rate?

Over the past 100 years,what has happened to the average workweek in the U.S.manufacturing industry? Why has this occurred? What are the implications for the size of the income and substitution effects?

Suppose the economy's production function is Y = AK0.3N0.7.If K = 2000,N = 100,and A = 1,then Y = 246.If K rises by 10%,and A and N are unchanged,by how much does Y increase?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Consumption, saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Suppose the economy's production function is Y = AK^0.3^N^0.7^.If K = 2000,N = 100,and A = 1,then Y = 246.If K rises by 10%,and A and N are unchanged,by how much does Y increase?