Survey of Economics (MindTap Course List)
9th Edition
ISBN: 9781305260948
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Students have asked these similar questions
Q1 What is "capital"?
The salary we pay employees
Please give just answer. There is no
need to explain.
The money we pay to the government
O Money invested in a building or machine to help us make products
Money we make when customers pay us
O None of the above
Q2lf a country experiences high GDP and inflation, followed by a lower GDP
and deflation, this is an example of
O Unemployment
Recession
the Business Cycle
O Supply and Demand
None of the above
Q3 What causes inflation?
O People don't have enough money
O People have too much money
O People have too much money and many businesses want some of that money
O People owe a lot of money
O The government causes inflation by rais ing interest rates
Q4 The Water and Diamond Paradox explains:
O Why supply and demand always meets in the middle of a graph
Marginal utility of diamonds
O Why water is inexpensive while diamonds are so expensive
O Why water is so expensive while diamonds are inexpensive
O None of the above
Q5 The unemployment…
Suppose that Indonesia's national production function is Y = K 05L 05, where K is the
amount of land and Lis the amount of labor. The economy starts when the amount of
land owned is 100 units and the number of workers is 100 units. Calculate the following
indicators.
a. How much output is produced?
b. What are the labor wages and land rent?
c. What is the share of the output received by labor?
d. If a natural disaster occurs that causes the population to be reduced by half, what is
the new level of national output?
e. What are the new rates of labor wages and land rent?
f. What share of output does the labor receive now?
On the graph, draw an economy's labour market. Label them LS, and LD.
On the graph, draw a point to show the market equilibrium. Label it 1.
Now the economy experiences an increase in labor productivity.
Draw and label a curve that shows the effect of this increase in labour
productivity.
Draw a point at the new labor market equilibrium. Label it 2.
>>> Draw only the objects specified in the question.
80-
70-
80-
50-
40-4
30-
20-
10-
0
Real wage rate (dollars per hour)
100
200
300
400
Labor (billions of hours per year)
Select
Point
3-point
Curve
500
600
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- The graphs below depict the initial market for labor (on the left) and the macroeconomic production function (on the right). You will use these graphs to identify the effect of an increase in the number of available workers on employment, Potential GDP, and per-worker productivity. Real Wage $35 $30 $25 $20 $15 $10 $5 20 40 60 80 Supply Demand 140 100 120 Quantity of Employment (in thousands of workers) Potential GDP (in millions of dollars) $70 $60 $50 $40 $30 $20 $10 20 40 60 80 100 120 140 Quantity of Employment (in thousands of workers) Suppose that a substantial increase in labor force participation increases the supply of labor by 40,000 workers at every value of the real wage. (1) Identify the effect of this event on equilibrium employment in the market for labor, and identify the specific new equilibrium level of employment. (2) Identify the effect of this event on Potential GDP, and identify the specific new level of Potential GDP. (3) Finally, identify the effect of this…arrow_forwardPlease label which part of the question (a, b, c, or d) that you are answering. A small economy produces only two goods: bananas and computers. The prices and quantities of these goods for the years 2018, 2019 and 2020 are given below. Show all working where possible and express answers to 2 decimal points. Year Price of Bananas Quantity of Bananas (kgs) Price of Quantity of (per kg) Computers Computers 2018 $4.10 947 $331.00 55 2019 $ 4.20 970 $335.00 57 2020 $ 4.30 990 $340.00 60arrow_forwardFIGURE 1 Food 80 E 60 40 20 D G B 20 40 60 80 100 110 120 140 160 180 200 Clothing Refer to FIGURE 1. Point G on the graph represents O the same combination of products that is available at point C. a combination of products that reflects the existence of unemployed resources. O a combination of products that is beyond the economy's current production capability. O the combination of products that the economy is currently producing.arrow_forward
- Suppose that a country experiences a reduction in productivity--that is, an adverse shock to the production function. (This example should sound familiar!)a. What happens to the labor demand curve?b. How would this change in productivity affect the labor market--that is, employment, unemployment, and real wages--if the labor market was always in equilibrium?c. How would this change in productivity affect the labor market if unions prevented real wages from falling?arrow_forwardIf the labor force increased to 180 million and the working-age population increased to 300 million what would the labor force participation be? ____ percent.arrow_forwardConsider a small country that produces and consumes only two goods: coffee and bananas. The quantity produced and price of each good in 2018 and 2019 are provided in the table below. Year 2018 Coffee Bananas Year 2019 Coffee Bananas The real GDP for year 2018 is: $ The real GDP for year 2019is: $ The growth of the real GDP is: Quantity % 650 pounds 300 pounds Quantity 700 pounds 330 pounds Price $5.5 per pound $0.4 per pound Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The nominal GDP for year 2018 is: The nominal GDP for year 2019is: $ Price $6.0 per pound $0.5 per pound The GDP Deflator in 2018 is: The GDP Deflator in 2019 is: The inflation rate between the two years using the GDP deflator is. % Assume the average consumer buys 1 pound of coffee and 2 pounds of Bananas. Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The consumer price index for 2018 is: The consumer price…arrow_forward
- The country of Econoland produces two goods: textbooks and widgets. Last year produced 200 textbooks and 500 widgets. This year it produced 250 textbooks and 600 widgets. Given no other information which of the following could not explain the change?  A) Econo land experienced an improvement in widget making technology B) none of these answers are correct based on the question C) Econo land experienced a reduction in unemployment Can you help me understand this morearrow_forwardQUESTION 4 The following picture represents the impact of a change in total factor productivity. PPF2 C2 PPF, 12 (0,0) Leisure, / PPF3 -G Based on your observations from A and B, how do you think that the aggregate labor supply curve would look like in this economy? Choose from the following 3 diagrams: A h-l h-l C h-l Figure A Figure B Figure C Consumption, Carrow_forwardSuppose land increases by 20% and the number of employed workers increases by 25% in country A. Given this information, explain what will happen to consumption per worker at the new steady state equilibrium, following the initial changes.arrow_forward
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