Diminishing Returns? An economy increased employment first from 10,000 to 20,000 and then from 20,000 to 30,000. The corresponding increases in output were 15,000 and 12,000, respectively. Nothing else changed during this period. Did this economy exhibit diminishing returns?

Q: markets to show how the change in A affects the supply of capital, the supply of labor, the real…

A: Answer:-As per rule of economy when demand increases the supply and its consumption also increase.…

Q: . How does an increase in labor-productivity increase income? a. An increase in productivity,…

A: Increase in labor productivity means that the labor become more effective and the more output will…

Q: Suppose a country has a production function Y=2K0.5L0.5, where K is the amount of capital and L is…

A: As per given information given in question; The Cobb Douglas Production FUnction is given below ;…

Q: Which kind of unemployment is worse in macroeconomics? Also give some suggestions to overcome the…

A: Unemployment is the situation in which the employable person seeking a job but cannot find it.

Q: Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 in revenue,…

A: 2) Gross Domestic Product or GDP is the sum total of the money value of all goods and services…

Q: 13. During the first three months of 2009, the number of American workers counted by the Bureau of…

A: Employment decreased by = 2,451,000 Unemployment increased = 2,053,000

Q: Year 2017 2018 2019 Unemployment Rate 11.63% 9.1% 8.0% Inflation Rate 4.39% 3.73% 3.91%…

A: Answer: Given data; Year 2017 2018 2019 Unemployment rate 11.63% 9.1% 8.0% Inflation rate…

Q: 1. Suppose the economy's production function is Y = AKO.3N0.7. If K = 2000, N = 100, and A = 1, then…

A: Given the production function, Y = AK0.3N0.7K = 2000N = 100A = 1

Q: What is the quantity of real GDP produced if the real wage rate is at the​ full-employment…

A: Real GDP is inflation adjusted money value of all final goods and services produced in an economy.

Q: Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 in revenue,…

A: GDP or gross domestic product of a country is the total value (market or monetary) of the finished…

Q: How will each of the following affect the current level of full employment output? Explain a) A…

A: Full employment:- When an economy is at full employment, its GDP is at its maximum equilibrium…

Q: Holding all factors of production constant except for labor, what happens in an economy when real…

A: (1). Given condition, All factors of production except for labor are constant. Technology, land and…

Q: Below are the direct consequences of unemployment EXCEPT?     Negative impact on government…

A: Unemployment refers to a situation in which all those people who are willing to work at the existing…

Q: a) What is the equilibrium wage rate and equilibrium level of employment? A. $15 and 35 units of…

A: a. The equilibrium exists at a point where the demand curve intersects supply curve. When this…

Q: - What type of unemployment (cyclical, frictional, or structural) applies to each of the following:…

A: Unemployment is a economic situation when a person is willing to work but do not find work. The…

Q: Suppose that an economy’s production function is Cobb–Douglas with parameter = 0.3 a. What fractions…

A: Given: An economy’s production function is Cobb–Douglas with parameter: α = 0.3 To Find: The…

Q: Q1. What effect would each of the following have on the value of the firm? (a) A new advertising…

A: Hi! thanks for the question but as per the guidelines, we can answer up to three subparts at one…

Q: Y=5K/5L4/5, where Y is output, K is capital, and L is labor. Firms are price-takers and maximize…

A: Given production function :- Y = 5K1/5L4/5

Q: suppose there is an adverse supply shock. It would  a. Shift the production function up and…

A: An adverse supply-side shock is an occasion that makes a sudden expansion in expenses or…

Q: Table 1 Production Function and Demand for Labor Schedules Quantity of labor demanded (billions of…

A:

Q: Assume no change in the labour force. In the 2030s, physical capital increased by 20% and GDP…

A: The marginal product of capital refers to an increase in the total product because of an additional…

Q: Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues from newly mined gold…

A: Total revenue before the price change = $10 million, Price increased by = 100%  New sales revenue =…

Q: Suppose that the table presented below shows an economy's relationship between real output and the…

A: Input Quantity Real GDP 150 400 112.5 300 75 200

Q: An increase in labour participation rate will lead to a. A higher equilibrium wage but lower…

A: Labor force participation rate is the percentage of adult population who is either employed or…

Q: Between 1979 and 2014 manufacturing employment in the United States O a) fell by almost 50%. b) fell…

A: Manufacturing employment refers to the employment in economy's manufacturing sector. we have been…

Q: Between 2008 and 2009, total Canadian employment increased by 277,000 workers, but the number of…

A: The labour force is the sum of the number of people employed and the number of people unemployed. It…

Q: Explain the difference between the nominal wage and the real wage. Using a wage setting curve and a…

A: As per classical theory when wages and prices are flexible then automatic adjustment comes in long…

Q: 4. As of July 2015, the unemployment rate in the United States was 5.5 percent. What would…

A: Answer: Unemployment rate: it refers to the ratio of unemployed to the labor force. The unemployment…

Q: The tables below show a nation's labor demand and labor supply schedules and its production…

A: Equilibrium is a stable situation in an economy where the forces of demand and supply interact. The…

Q: Suppose that the table presented below shows an economy's relationship between real output and the…

A: a) The productivity of an economy represents the relationship between an economy's real output and…

Q: Give a probable reason why some companies are reluctant to hire more and more of a worker?

A: To staff is the most important and crucial step in any organization. Having a satisfying and…

Q: The role of firms in the circular flow of income Select one: a. To provide capital b. To purchase…

A: The circular flow of money explains how money and goods are circulated between the household sector…

Q: Which of the following is NOT a macroeconomics statement?   The real domestic output increased by…

A: Macroeconomic deals with the economy as a whole Microeconomics deals with the economic behavior of…

Q: What is the quantity of real GDP produced if the real wage rate is at the full-employment…

A: In the labor market, the equilibrium wage and employment are determined at a point where the labor…

Q: The tables describe an economy's labour markets and its production function in 2017. Real wage rate…

A:

Q: Suppose the production function is given by Y = K0.4 L0.6, where K is amount of land and L is amount…

A: Part A) The production function is given in the question, putting the value of L and K which is…

Q: (2) Being another key indicator, employment reflects the current status of an economy. Empirical…

A: Macroeconomics is used to understand how efficient allocation of resources can lead to bridge the…

Q: Refer to the table below for the following question. Suppose this economy has labor force…

A:

Q: Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold…

A: Given: The gold mining firm has increased its sealed revenue on newly mined gold from $110 million…