Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 1SPPA
To determine
To list:
The given items into groups that change or do not change according to the production function, demand for labor, supply of labor and mention the direction in which the changes are shown.
Expert Solution & Answer
Explanation of Solution
The classification of the items is as shown below:
Those that change the demand for labor:
Company D introduces a new supercomputer that everyone can afford; increases the demand for labor.
A major hurricane hits Florida; reduces the demand for labor.
An economic slump in the rest of the world decreases US exports; reduces the demand for labor.
Those that change the supply for labor:
A major hurricane hits Florida; reduces the supply of labor.
More high school graduates go to college; reduces the supply of labor.
Those that change the production function:
A major hurricane hits Florida; reduces the production function.
Company D introduces a new supercomputer that everyone can afford; increases the production function.
Those that do not change the production function, demand for labor and supply for labor.
The
Economics Concept Introduction
The equilibrium quantity of labor refers to that quantity of labor supplied which causes the full employment of labor as per the market forces.
Production function:
The connection between different combinations of inputs and the maximum output of a product that can be produced with the given inputs, with the provided technology is represented by the production function.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Micro Question's just need help with question 4
Note: You must show your work in order to receive full credit on each of the numbers. Giving answers alone will not get you significant points
PROBLEM SET 3
Macroeconomic Measurement
Name _____________________________________ Semester __________________
The people of Fort Worth buy only juice and cloth. The CPI market basket contains the quantities bought in 2009. The average household spent $60.00 on juice and $30.00 on cloth in 2009 when the price of juice was $2.00 a bottle and the price of cloth was $5.00 a yard. In the current year, 2010, juice is $4.00 a bottle and cloth is $6.00 a yard. Calculate the CPI and inflation rate in 2010. (Note: use formula for finding CPI = (total spending in current year/total spending in base year) x 100 for inflation use formula for change in CPI = (CPI current year – CPI base year/CPI base year) x 100.
2.A) Assume the market basket contains 10X, 20Y, and 45Z. The…
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines
CDs
Quantity
Price
Quantity
Price
(Dollars)
(Dollars)
2020
20
50
60
5
2021
21
70
80
6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.)
Which of the following statements is correct? Check all that apply.
The CPI allows the basket of goods and services to change.
The GDP deflator allows the basket of goods and services to change.
The inflation rate in 2021 is not the same using the two methods.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines
CDs
Quantity
Price
Quantity
Price
(Dollars)
(Dollars)
2020
20
50
60
5
2021
21
70
80
6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.)
Which of the following statements is correct? Check all that apply.
The GDP deflator holds the basket of goods and services constant.
The CPI holds the basket of goods and services constant.
The inflation rate in 2021 is the same using the two methods.
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
Knowledge Booster
Similar questions
- A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2020 10 40 30 10 2021 12 60 50 12 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 3 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.) Which of the following statements is correct? 1.The GDP deflator holds the basket of goods and services constant. 2.The inflation rate in 2021 is not the same using the two methods. 3. The CPI allows the basket of goods and services to change.arrow_forwardAn economy produces two goods, x, and y. A year ago the price of x was $4 and the price of y was $6. Today the price of x is $8 and the price of y is $10. What happened to the nominal and the real value of good x? What happened to the nominal and real value of good y?arrow_forwardThe table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2010. Year Price of waffles Price of waffles Quantity of Pretzels Price of pancakes Quantity of pancakes 2010 $9 45 $ 2 200 2011 10 50 3 230 2012 10 55 3.5 230 2013 11 60 4 250 - Compute the followings: Nominal GDP. Real GDP. GDP deflator Inflation rate in 2013.arrow_forward
- State three ways used to measure the amount of economic activity in the economy GDP at factor price is greater than GDP at factor cost True or False?arrow_forwardIn December 2021, a small island country has an adult population of 20,000. The number of employed is 9,000 and the number of unemployed is 1,000. (a) Find the unemployment rate and the labor-force participation rate. (b) In June 2022, a foreign bank opens a branch in the capital of the country and hires 700 students who graduated from college in May 2022. In July 2022, a local company decides to close its factory laying off 3,000 workers. 600 of them find jobs in other industries, 2,000 spend three months looking for a job but get discouraged and decide to stay home and wait for better economic conditions, and as of December 2022 the remaining 400 have not found a job yet but are actively searching. Find the official unemployment rate and the labor-force participation rate in December 2022 if the only change in the adult population during the year was the tragic loss of 200 non-working retirees and 10 crew members in a local plane crash.arrow_forwardThe table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2010. Year Price of waffles Quantity of waffles Quantity of Pretzels Price of pancakes Quantity of pancakes 2010 $9 45 $ 2 200 2011 10 50 3 230 2012 10 55 3.5 230 2013 11 60 4 250 - Compute: nominal GDP, real GDP, GDP deflator, and Inflation rate in 2013.arrow_forward
- The labor force is comprised of a)the total number of working age people b) the total number of employed people C) the total population in an economy d) the total # of people who are employed or unemployedarrow_forwardIn France's economy there are 171 people in the labor force. France has a separation rate of 80% while the finding job's rate is 73%. a. natural rate of unemployment b.number of employed people in the economyarrow_forwarda. The overall price level increased 50% from the year 2018 to 2019 in the country, and the price index is 100 in 2018, what is the value of price index in 2019? 3. b. Calculate the nominal and real GDP in 2018 and 2019 by taking 2018 as base year.3 c. Take 2019 as base year instead of 2018 and calculate the real GDP for 2018. Is the real GDP of the 2018 changes? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721arrow_forward
- The consumers in the economy buys only two general types of products: Apples, and Bananas. Price and Quantity information of these items over a period are shown below: Year 2019 Year 2020 Product Quantity Average Price per Unit Quantity Average Price per Unit Apples 5 $5 9 $12 Bananas 15 $20 21 $20 Using year 2020 as the base year, the economy's consumer price index (CPI) in year 2019 is ______. (Your answer should include the first decimal point, if any.)arrow_forwardA country produces 5 planes and 10 cars. the price of one unit of plane is given by $100 while the price of Car is $1. Calculate the GDP of this country ?arrow_forwardThe island nation of Coronia subsists entirely on pancakes and syrup. That is, they produce and consume only pancakes and syrup in the following amounts: Pancake Mix (cases) Maple Syrup (gallons) Quantity Price Quantity Price 2019 16 5 8 30 2020 48 6 10 50 (a) Using a method like the CPI, compute the CPI in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year and fix the market basket at 4 pancakes and 2 syrups. (b) Using a method like the GDP deflator, compute the GDP deflator in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year. (c) Is there a difference in the inflation rate using the two methods? Explain why or why not.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning