List and explain the factors that can increase labor productivity
What will be an ideal response?
The three factors that can increase labor productivity are saving and investment in physical capital, expansion of human capital, and discovery of new technology. Saving and investing in physical capital increases the amount of capital per worker and thereby increases workers' productivity. Increasing the amount of human capital means that workers' skills, knowledge, and talents increase, which thereby increases their productivity. And, the discovery and use of new technologies allows workers to produce more goods and services than before, which increases their productivity.
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Holding the nominal interest rate constant, a ________ in the expected rate of inflation tends to ________ the real interest rate
A) rise; increase. B) fall, decrease. C) fall; increase. D) rise; improve.
Government investment has resulted in an increase in entrepreneurial activity in Ange’s country. This will impact the country’s production possibilities curve by ______.
a. negating it
b. shifting it outward
c. shifting it inward
d. causing it to fluctuate
All of the following are examples of the law of diminishing control that followed banking regulations put in place after the Great Depression except:
A. banks created new instruments to circumvent the law. B. politicians were pressured to dismantle the regulations. C. financial business migrated to unregulated institutions. D. depositors demanded financial institutions be responsible for their financial decisions.
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.