What is labor productivity? How does a country's standard of living relate to labor productivity?
What will be an ideal response?
Labor productivity refers to the amount of goods and services produced per worker. Per capita real GDP increases only if labor productivity increases, so, increases in a country's standard of living are tied to increases in labor productivity.
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A firm's demand for labor increases and its demand curve for labor shifts rightward if
A) the wage rate falls. B) the price of its product falls. C) its value of marginal product decreases. D) an advance in technology increases the marginal product of labor.
Government purchases, as a component of GDP include all except:
A. goods and services bought by all levels of government. B. both consumption- and investment-type goods bought by the government. C. include services the government pays for. D. goods purchased by government from foreign countries.
A budget line is a straight line designed to show
a. how income is related to hours worked. b. all combinations of two goods that can be purchased with a given income. c. the way a homemaker should divide money among several commodities. d. that if more money is spent on one good, the breadwinner must work all the harder to maintain a satisfactory level of living. e. preferences for goods and services.
Explain how it is possible for the government debt to grow forever