QUIZ 2: Macro – Winter 2002 - The University of Chicago Booth
... told otherwise, (7) we are considering a closed economy (NX=0), and (8) changes in N do not independently affect investment demand. Finally, assume all changes to exogenous are permanent and unexpected. Note: For questions 1-3, you must circle ALL true answers. Multiple answers could be true (or not ...
... told otherwise, (7) we are considering a closed economy (NX=0), and (8) changes in N do not independently affect investment demand. Finally, assume all changes to exogenous are permanent and unexpected. Note: For questions 1-3, you must circle ALL true answers. Multiple answers could be true (or not ...
marginal product of labor
... Labor Demand The business sector in the economy will want to employ more labor so long as the marginal benefit of hiring an additional worker (i.e., the additional output resulting the employment of an additional unit of labor) is greater than the marginal cost of hiring an additional worker (i.e., ...
... Labor Demand The business sector in the economy will want to employ more labor so long as the marginal benefit of hiring an additional worker (i.e., the additional output resulting the employment of an additional unit of labor) is greater than the marginal cost of hiring an additional worker (i.e., ...
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... As in other Latin American countries, Mexico's import substitution model has been abandoned. Since the 1990s (especially so since the beginning of the North American Free Trade Agreement implementation in 1994), the reforms have included the agricultural sector. Antonio Ytinez-Naude and Rosa Martha ...
... As in other Latin American countries, Mexico's import substitution model has been abandoned. Since the 1990s (especially so since the beginning of the North American Free Trade Agreement implementation in 1994), the reforms have included the agricultural sector. Antonio Ytinez-Naude and Rosa Martha ...
E719_No05_Chapter03
... An increase in w means that leisure is relatively more expensive, leading workers to consume less leisure (work more). This is a substitution effect. However, increase in w means that workers have more purchasing power. Normally more income leads to more consumption of both items (more goods and mor ...
... An increase in w means that leisure is relatively more expensive, leading workers to consume less leisure (work more). This is a substitution effect. However, increase in w means that workers have more purchasing power. Normally more income leads to more consumption of both items (more goods and mor ...
Questions review:
... Discuss. (Hint: The union’s marginal revenue curve is given by L = 1200 - 20w.) Recall that the monopolist chooses output by setting marginal revenue equal to the marginal cost of supplying one more unit of output, as opposed to the competitive firm which chooses output by setting price equal to mar ...
... Discuss. (Hint: The union’s marginal revenue curve is given by L = 1200 - 20w.) Recall that the monopolist chooses output by setting marginal revenue equal to the marginal cost of supplying one more unit of output, as opposed to the competitive firm which chooses output by setting price equal to mar ...
Labor Unions - McGraw Hill Higher Education
... private sector has waned, but in the public sector it has grown. • This reflects, in some ways, the transition of America from a goods-based economy toward a services-based economy. ...
... private sector has waned, but in the public sector it has grown. • This reflects, in some ways, the transition of America from a goods-based economy toward a services-based economy. ...
Chapter 3 PowerPoint
... An increase in w means that leisure is relatively more expensive, leading workers to consume less leisure (work more). This is a substitution effect. However, increase in w means that workers have more purchasing power. Normally more income leads to more consumption of both items (more goods and mor ...
... An increase in w means that leisure is relatively more expensive, leading workers to consume less leisure (work more). This is a substitution effect. However, increase in w means that workers have more purchasing power. Normally more income leads to more consumption of both items (more goods and mor ...
Vocabulary and Concepts for first Economics 101 Exam
... Opportunity cost: think of (opportunity) costs in real terms, not money terms. What you have to give up when you use scarce resources for more of one good or service in terms of what you lose by not using these same resources in your next best use. Opportunity costs include total social cost (privat ...
... Opportunity cost: think of (opportunity) costs in real terms, not money terms. What you have to give up when you use scarce resources for more of one good or service in terms of what you lose by not using these same resources in your next best use. Opportunity costs include total social cost (privat ...
ECN 112 Chapter 18 Lecture Notes
... c. Expected future income. If a household’s expected future income is low, its saving is high. If a household’s expected future income is high, its saving is low. C. Financial Market Equilibrium and the Interest Rate The intersection of the demand for financial capital curve and the supply of financ ...
... c. Expected future income. If a household’s expected future income is low, its saving is high. If a household’s expected future income is high, its saving is low. C. Financial Market Equilibrium and the Interest Rate The intersection of the demand for financial capital curve and the supply of financ ...
Labor Markets Key Concepts
... o MRP = Demand for labor (primarily for the firm, but also for the market if the event correlates with an aggregate change in the value of output workers are producing) DERIVED DEMAND FOR LABOR—if the demand for the product workers are making increases (increasing price of the output) then MRP inc ...
... o MRP = Demand for labor (primarily for the firm, but also for the market if the event correlates with an aggregate change in the value of output workers are producing) DERIVED DEMAND FOR LABOR—if the demand for the product workers are making increases (increasing price of the output) then MRP inc ...
The Labor Market and Potential GDP
... GDP – The marginal product of labor curve is the demand for labor curve with W/P replacing MP on the vertical axis. – Firms hire more labor as long as the marginal product of labor exceeds the real wage rate. – With the diminishing marginal product of labor, the extra output from an extra hour of la ...
... GDP – The marginal product of labor curve is the demand for labor curve with W/P replacing MP on the vertical axis. – Firms hire more labor as long as the marginal product of labor exceeds the real wage rate. – With the diminishing marginal product of labor, the extra output from an extra hour of la ...
ib-economic-labor-forces
... – The measure of the income generated by a nation’s residents from international and domestic activity – Preferred over GDP ...
... – The measure of the income generated by a nation’s residents from international and domestic activity – Preferred over GDP ...
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... areas is contributing to the transfer of resources out of agriculture. Such transfers may portend a decline in certain agricultural subsectors, particularly livestock. These effects should be considered with the same degree of interest as that afforded energy-related community structural impacts, gi ...
... areas is contributing to the transfer of resources out of agriculture. Such transfers may portend a decline in certain agricultural subsectors, particularly livestock. These effects should be considered with the same degree of interest as that afforded energy-related community structural impacts, gi ...
Sample questions
... 8. What causes the IS curve to shift? What causes the LM curve to shift? What results in movement along each curve? Answer: Any exogenous change in the goods market will shift the IS, changes in income and interest rate will cause movements along it. Any exogenous change in the money market plus ch ...
... 8. What causes the IS curve to shift? What causes the LM curve to shift? What results in movement along each curve? Answer: Any exogenous change in the goods market will shift the IS, changes in income and interest rate will cause movements along it. Any exogenous change in the money market plus ch ...
Lecture II Evolution of Macroeconomics: from the
... Now Y/L = ALb-1K1-b = A(K/L)1-b = g(K/L) So if K/L in a country is much less than in another country, then A, which is commonly referred to as total factor productivity, must be much greater in the resource poor country We can now plot against K/L or as is often done, we take K as given and plot Y a ...
... Now Y/L = ALb-1K1-b = A(K/L)1-b = g(K/L) So if K/L in a country is much less than in another country, then A, which is commonly referred to as total factor productivity, must be much greater in the resource poor country We can now plot against K/L or as is often done, we take K as given and plot Y a ...
Unemployment - Alvinisd.net
... • The BLS does a survey of 60,000 homes to determine who is employed and not-employed. • Part time workers are considered fully employed. • Discouraged workers are not counted in labor force-leads to under reporting of unemployment rate. ...
... • The BLS does a survey of 60,000 homes to determine who is employed and not-employed. • Part time workers are considered fully employed. • Discouraged workers are not counted in labor force-leads to under reporting of unemployment rate. ...
Effective Surplus Labor: Concept and Measures
... • Labor surplus appears only if there is a reference: the industrial sectors searching for profits. For capitalist industries a labor force is surplus, if his marginal productivity does not, at least, reach his wage demand. • In the traditional agricultural society without capitalist industries the ...
... • Labor surplus appears only if there is a reference: the industrial sectors searching for profits. For capitalist industries a labor force is surplus, if his marginal productivity does not, at least, reach his wage demand. • In the traditional agricultural society without capitalist industries the ...
Document
... Shift the production function up and decrease marginal products at every level of employment. Shift the production function down and decrease marginal products at every level of employment. Shift the production function down and increase marginal products at every level of employment. Shift the prod ...
... Shift the production function up and decrease marginal products at every level of employment. Shift the production function down and decrease marginal products at every level of employment. Shift the production function down and increase marginal products at every level of employment. Shift the prod ...
Chapter 8 review -answers in bold Suppose an economy`s real GDP
... Both resource quantity and resource productivity contribute significantly to increased economic growth in the United States. About a third of the increase in economic growth comes from increases in resource input and about two-thirds from increases in resource productivity. Clearly, it is not the qu ...
... Both resource quantity and resource productivity contribute significantly to increased economic growth in the United States. About a third of the increase in economic growth comes from increases in resource input and about two-thirds from increases in resource productivity. Clearly, it is not the qu ...
Fei–Ranis model of economic growth
The Fei–Ranis model of economic growth is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model. It recognizes the presence of a dual economy comprising both the modern and the primitive sector and takes the economic situation of unemployment and underemployment of resources into account, unlike many other growth models that consider underdeveloped countries to be homogenous in nature. According to this theory, the primitive sector consists of the existing agricultural sector in the economy, and the modern sector is the rapidly emerging but small industrial sector. Both the sectors co-exist in the economy, wherein lies the crux of the development problem. Development can be brought about only by a complete shift in the focal point of progress from the agricultural to the industrial economy, such that there is augmentation of industrial output. This is done by transfer of labor from the agricultural sector to the industrial one, showing that underdeveloped countries do not suffer from constraints of labor supply. At the same time, growth in the agricultural sector must not be negligible and its output should be sufficient to support the whole economy with food and raw materials. Like in the Harrod–Domar model, saving and investment become the driving forces when it comes to economic development of underdeveloped countries.