Question

identify into which category i s. HD W or no? in which category or why not? p a. Nissan builds a new automobile plant in the US Yes ca 1 plan b. Delta Airlines sells one of its existing jets to Southwest. No.beau t y product c. Ms. Moneybags buys existing shares of GM stock. Me t des d. A California winery produces a case of Merlot and sells it to a customer in Canada. Y e soda- e An American buys a bottle of French perfume in Paris. Mo, f. General Motors produces too many cars for 2019. The cars do not sell this year, so the dealer adds the surplus cars to inventory. Y o u don 4. Define the labor force, employment, and unemployment. What is the key characteristic of people who are technically "unemployed according to the Bureau of Labor Statistics? What is the opportunity cost of unemployment to the U.S. economy? How do discouraged workers, the marginally attached workers and the underemployed contribute to the unemployment statistic? What is the formula for the Unemployment rate? What is the consequence of a high Unemployment rate to the national growth rate? 5. Describe the different kinds of unemployment according to their causes and duration: frictional, structural, cyclical and natural unemployment. Draw the business cycle diagram. Identify 4 sections of the business cycle, the growth trend line, and the unemployment and inflation gaps. 7. Describe what physical capital, human capital, technology, and natural resources contribute to long run economic growth of aggregate output? Consider the contrasting cases of an advanced nation and a developing nation. Questions for 15 points each. DO BOTH OF THEM. Round answers to 2 decimal points. 1. Plot the Productivity graph with the following data: Real GDP per worker $80,000 $100,000 $125,000 Physical Capital per $50,000 $75,000 $100,000 worker a. What other factors are held fixed? Does this country exhibit diminishing returns to physical capital per worker? Calculate the Marginal Products of Capital to prove your answer. b. Assume an increase in human capital doubles the output per worker at every level of capital Draw the new Productivity curve on your diagram. 2. A student must purchase 2 Economics, 1 Accounting, and 1 Math textbook each year. With the following prices, calculate a price index number for each year, using 2017 as the base year. What is the percentage change in the price index from 2017 to 2018? What is the percentage change in the price index from 2018 to 2019? 2017 2018 2019 Economics book $200 $210 $220 Accounting book $240 $275 $300 Math book $150 $180 $200 Total expenditure СРІ

Answer 1

4.

Labor force is the set of people who are either working in a job or are searching for the job. Employment refers to the number of people employed in the job that can be either full time, or part time. Unemployment refers to the condition where people are unemployed, but are searching for the jobs.  As per the definition, unemployed people are those who are over 16 years of age, not in job, actively searching the job for the last 4 weeks. These people will be considered as unemployed people.  The official unemployment rate or U-3 unemployment rate does not consider discouraged workers, marginally attached workers and or underemployed workers, so the U-3 unemployment rates is between 4% to 5%. But, when these type of people are considered as unemployed, then it increases the unemployment rate up to the level of 7% to 8%. Hence, consideration of these types of people, will increase the unemployment rate and it will show the true condition of the economy.

A higher unemployment rate, means less people are in jobs. It reduces the consumption and makes aggregate demand to reduce and shift the AD curve to the left. It makes economy to shrink that is bad for the economic growth and development. So, higher unemployment rate leads to poor economic growth and development.

5.

Frictional unemployment refers to the unemployment that takes place due to people moving from one job to another job for better pay, promotion and job opportunities. Structural unemployment refers to the unemployment due to structural changes. These changes can be change in rules and regulations, technology or techniques. Cyclical unemployment is the unemployment due to the change in business cycle in the economy. For example, unemployment due to recession is the cyclical unemployment. Natural rate of unemployment is the unemployment when economy operates at full potential. It includes frictional as well as structural unemployment rate in the economy.

Pl. repost other unanswered questions for their proper answers!