Exam 3: Productivity, Output, and Employment

As a result of the superb economics essay that you wrote during this quarter,you won the Adam Smith prize of $100.The receipt of these funds would be an example of

Your boss wants to know if you should lay off any workers.You answer that you should lay off workers if the

The city of Hope has a labor force of 1000.Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs.On January 1,May 1,and September 1 of each year,50 people lose their jobs for a period of four months before finding new jobs.What is the average duration of an unemployment spell?

The aggregate supply of labor is the

If the marginal product of capital doesn't change as the amount of capital increases,a figure showing the relationship between output and capital

Suppose the economy's production function is Y = A Suppose K = 200,N = 2000,and A = 1.Calculate the marginal product of capital.

Suppose the economy's production function is Y = A.Suppose K = 200,N = 2000,and A = 1 . Calculate the marginal products of labor and capital.

Suppose the marginal product of labor is MPN = 200 - 0.5N Where N is aggregate employment.The aggregate quantity of labor supplied is 300 + 8w,where w is the real wage.What is the equilibrium real wage?

Research on labor supply generally shows that

What is the unemployment rate if there are 170 million people employed,25 million people unemployed,and 35 million not in the labor force?

Which of the following events would lead to an increase in the marginal product of labor for every quantity of labor?

A sharp increase in stock prices makes people much wealthier.If the main effect of this increased wealth is felt on labor supply,what happens to current employment and the real wage rate?

Firms hire labor at the point where the

Suppose the marginal product of labor is MPN = 200 - 0.5N Where N is aggregate employment.The aggregate quantity of labor supplied is 300 + 8w,where w is the real wage.What is the equilibrium quantity of employment?

Suppose the economy's production function is Y = A 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?

The marginal product of labor (measured in units of output)of a firm is given by MPN = A(2000 - N)where A measures productivity and N is the number of labor hours used in production.Suppose the price of output is $6 per unit and A = 0.002.(a) What will be the demand for labor if the nominal wage is $18? (b) What will be the demand for labor if the nominal wage rises to $21?

Cyclical unemployment is caused by

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

Suppose the economy's production function is Y = A When K = 1000,N = 50,and A = 15,what is Y?

Suppose the production function is Y = A Suppose in 2000,K = 1000,N = 100,and Y = 199.5.In 2010,capital,labor,and output have doubled,so K = 2000,N = 200,and Y = 399. (a)By what percentage did productivity grow from 2000 to 2010? (b)If output had risen to 798 instead of 399,and capital and labor doubled,by what percentage would productivity have grown from 2000 to 2010?