Assume that an economy has 2000 workers, each working 3000 hours per year. The average real output per worker-hour is $10. What will the total output or real GDP be? Explain.
What will be an ideal response?
$60 million. Take the 2000 workers and multiply that number times 3000 work hours. It results in 6,000,000 work hours. Multiplying this number of work hours by $10 per hour results in $60 million.
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Which of the following formulas would you use to calculate the nominal wage rate?
A) nominal wage rate = real wage rate × CPI B) nominal wage rate = (real wage rate × CPI) × 100 C) nominal wage rate = (real wage rate × CPI) ÷ 100 D) nominal wage rate = (real wage rate ÷ CPI) × 100 E) nominal wage rate = real wage rate ÷ CPI
________ is the change in market value of capital over a given period
A) Accounting depreciation B) Implicit rental rate C) Economic depreciation D) Accounting implicit rental cost
The MP curve may be used to represent how ________
A) movements of the inflation rate are determined by the real interest rate B) monetary policy responds to changes in the real interest rate C) movements of the real interest rate are related to the inflation rate D) all of the above E) none of the above
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.