*Let the hours worked be x (which is same in both years.)
Labor productivity in year1 = 300/x and in year2 = 309/x.
Increase in productivity = 309/x – 300/x = 9/x
Percentage increase in labor productivity = (9/x)/(300/x) *100 = 3%
*Let the labor productivity be z. the new labor productivity will be 1.09z in the next year . Percentage increase in average compensation will be = 2/3*(1.09z- z)/(2/3*z)
Increase in average compensation = (0.09z/z)*100 = 9%.
The correct answer is option A
Please explain as well About two thitds of all the Income generated in the private business...
please answer in terms of blanks
of capital. Payments to capital could take the form of dividend payments to the shareholders in a company or rent le The Femaining third is pald to the owners paid to the owners of real estate So if you multiply output () in the private business sector by 2/3, you get total employee compensation from that the order (so you multiply 2/3 times Q/ HW) gives the same result (average compensation 2/3 x [Q/...
Notice that the distinction between nominal and real (or current dollar and constant dollar units) applies only to variables measured in dollars. An hour worked is an hour worked. There is no such thing as nominal hours worked This table measures output using dollars that have the purchasing power that a dollar had in 2005. The label "Real Output" tells you that the effects of inflation have indeed been removed from this measure. Calculate the missing values for labor productivity...
Macroeconomics:
2. Figure: Technological Progress and Productivity Growth Real GDP per worker (constant dollars) Productivity using 2010 technology $120,000 90,000 В Productivity 60,000 using 1940 technology 30,000 0 10 20 30 40 50 60 70 80 90 100 Physical capital per worker (2000 dollars) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from: O A to B. O...
6. International joint ventures Which of the following statements about joint ventures are true? Check all that apply. A joint venture may suffer from the problem of two masters." Dividing joint-venture ownership equally prevents deadlocks in decision making Joint ventures lessen the distinction between local and foreign production. A new joint venture creates welfare gains when it yields previously unattainable cost reductions. The following graph shows labor markets in the United States and Mexico. The horizontal axis denotes the total...
3. You manage one department in a large corporation. Two years ago, you had 20 workers and produced 40.000 units. The company allocated 10 more workers to your department last year, and output increased to 45,000. You just received a memo from your boss indicating that he is very concerned about the 500-unit fall in the average productivity of your workers. How can you defend yourself? 4. What is the difference between marginal product and returns to scale? Explain why...
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Macroeconmics
received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...
This is a question in Macroeconomics about Solow Model
Consider an economy in discrete time t = 0,1,2,3,... Y denotes total output, C denotes total consumption, and S denotes total savings. At any period, total output is split between consumption and saving, i.e. Y() = C(t) + s(t) The economy is closed so that aggregate saving equals aggregate investment, S(t) = 1(t). Investment augments the national capital stock K and replaces that part of it which is wearing out. Suppose...
P AY AND P ERFORMANCE AT Y AKIMA V ALLEY O RCHARDS The state of Washington is well known for its apples. East of the Cascade Mountains, dry air and plentiful groundwater make for perfect apple-growing conditions. In 2006, the state shipped more than 92 million boxes of apples to buyers worldwide. Apple-growing is a labor-intensive process. Trees must be pruned (usually in the off-season), harvested (when apples are ripe, usually in early fall), and thinned. Apple tree thinning is...
Diminishing marginal productivity a. means that adding one more unit of the variable input will reduce total product. b. occurs when the marginal product curve begins to slope downward c. occurs eventually because each additional unit of the variable unit has, on average, fewer units of the fixed input with which to work. d. both a and c e. both b and c 7. The marginal rate of technical substitution is a. the rate at which the firm can substitute...
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5.9. a. Suppose that y is the average price (in thousands of dollars) of a typical three-bedroom home in a large Canadian city. Fourteen consecutive observations y1, y2, y14 are taken at consecutive 6-month intervals over 7 years. At the beginning of the eighth interval the government implemented steps...