Multiple Choice Quiz 1. US powntial GDP is the value of the goods and sand servi
ID: 1203318 • Letter: M
Question
Multiple Choice Quiz 1. US powntial GDP is the value of the goods and sand services prouced in of the goods and services base yearnt rate is zero A. in the reference base B when the U.S unemployment rate is C when the UiS economy is at full emplo D. . aiibouaehaolds wilroed and firms profp bet ael age rate curve shows the relationsh abor employed and firms' profits the relationship between e demand ro of lailingness to are willing to hire and the real and the real wage rate 2. The demand for labor work and t D. the labor force and the real wage rate 3. The supply of labor is the relationship between R all households willingness to work anr ntity of labor businesses are willin C the quantity of C. the qhor force time forgone of labor d the quantity th real wage rate of labor supplied A the quantity of labor supplied a A. the quantity of labor supplied and leisure real I wage rate C. firms willingness to supply jobs and the D. the labor force participation rate and the real y all of the abor supply decisions are influenced by all f te A the opportunity cost of taking leisure and not working 8. the after-tax wage rate C unemployment benefits D the number of full-time jobs available 5. The full employment quantity of labor-_ _ Why a and ot A. increases if labor becomes more productive 8 cannot increase because everyone who wants a job has one C. increases as the economy moves along its production function D. decreases if the income tax rate decreases 6. The natural unemployment rate- A. increases if unemployment benefits become more generous B. increases in a recession C. increases as the average age of the labor force rises D. decreases as firms outsource manufacturing jobs Eco 7. Job rationing A. increases the natural unemployment rate B. has no effect on the natural unemployment rate C. increases labor turnover as firms compete for high quality labor D. decreases the demand for labor, which lowers the real wage rat When you you will b 1 Define implic 2 Explai 3 Revie 4 Desc 8. Anefficiency wage results in all of the following except A. a decrease in the rate of labor turnover B. an increase in the C. greater work efort Cmployment quantity of labor D. n nease in of monitoring work effrt D. an D. anExplanation / Answer
(1) (C)
This is the definition of potential GDP.
(2) (C)
Labor demand curve reflects the relation between quantity of labor demanded & real wage rate.
(3) (B)
(4) (D)
(5) (C)
As economy moves along production function, output increases, labor demanded increases & full employment quantity of labor also increases.
(6) (C)
(7) (D)
Job rationing restricts firms from freely hiring labor, so demand for labor falls.
(8) (B)
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