The above figure shows an indifference map for a person's choices between leisure and consumption. Derive this person's labor supply curve for wage rates of $5, $10, and $15
What will be an ideal response?
This person's labor supply curve is downward sloping. The three coordinates for w,H are approximately (5,14 ), (10,11 ), and (15,9 ).
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Frictional unemployment is:
A. short-term unemployment that is associated with the process of matching workers with jobs. B. the extra unemployment that occurs during periods of recession. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the unemployment that results when people retire or leave the labor force.
The ability to produce a good or service using fewer resources than other producers use is known as
a. absolute advantage. b. comparative advantage. c. comparative specialization. d. absolute specialization.
In the formula for calculating the growth rate of multifactor productivity, the growth rate of labor productivity is represented by
A) y - n. B) b(k - n). C) bk/n. D) b - n.
An intended goal of contractionary fiscal and monetary policy is
A) an increase in interest rates. B) an increase in the price level. C) a decrease in the unemployment rate. D) a decrease in the level of aggregate output.