For each of the following sectors, identify (no explanations needed) the most important determinant/factor in its R (bid rent curve): . manufacturing sector: • office sector: . household sector:

Claudia Goldin argues that married women's labor force participation increased in the US during 1930s and 1950s due to the following developments Increased demand for office and other clerical workers with the new information technologies Increase in high school enrollment and graduation of women from 1910 to 1930 Decline in fertility rates and increase in divorce rate a and b

4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r. %3D 5) Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from 1870 to 2010. From the Figure we learn that the level of per capita GDP A. Has almost doubled for the US from 1880 to 2020 B. Was higher in the U.S. compared to the UK in 1880 C. Was higher in China compared to Argentina in 2000. D. Increased by approximately 5 times in Japan from 1950 to 1970. Answer 64,000 U.S. 32,000 16,000 Argentina 8,000 U.K. 4,000 Japan 2,000 S. Africa China 1,000 1880 1900 1920 1940 1960 1980 2000 2020

b. In the diagram below, draw the relationship between the relative price of paper/carpets and the wage to rental ratio. Briefly explain. Pe Pc w/r c. In autarky, do Australia and New Zealand use the same mix of labor to capital in each industry? Explain why or why not using the diagram drawn in a)

Marginal Produt and Resources How would you determine the demand for a factor of production? What factors influence the supply and demand for labor? Examine how those factors impact market demand for labor. How do labor unions try to increase the demand for labor? What has made labor unions such an integral part of the workforce? What is the difference between the rates of return for a renewable and nonrenewable resource? How do the rates of return on capital and land differ between a renewable resource and nonrenewable resource? How does the growing demand for food, fuel, and export affect the market for land?

Sketch a production function relating output to labour input. Now imagine that the amount of capital per person increases, thanks to the government borrowing to invest in more capital. Use dotted lines on the same diagram to show the impact on (i) total output and (ii) the average product of labour. Explain your answer.    Imagine that the demographic response to a higher standard of living is strongly positive. Using a different colour of line on the same diagram, show how this demographic response to higher incomes would go on to affect incomes in the future.   The population is aware that the government borrowing required to finance this capital investment will need to be paid back via tax rises, so they respond by reducing their spending. Using a “Keynesian cross” framework and sketch diagram, model this response as a fall in autonomous consumption, c0.

Graphically show the Circular Flow of Income and Goods (Closed Economics. Add in Government Sector) as presented in the virtual/remote lecture. Include all three markets: Labor, Product, Capital and the Government sector.Indicate the flow between the markets and sector--directions of flow and proper labels.

Explain how households and firms interact in the factor market and in the product market

19) Which of the following is an investment in human capital? A) The city government green lights the construction of a new concert arena. B) Rayburn Tool and Die Company purchases a new die-cutting machine. C) Displaced workers return to school to update their skills. D) Thompson Temp Agency replaces its desktop computers with laptop computers. 20) Which of the following is an investment in human capital? A) An individual decides to enroll in a vocational training program. B) A firm engages in on-the-job training. C) The government expands its programs to improve health care. D) all of the above 21) Embodied technical change results in A) an increase in physical capital. B) disembodied technical change. C) an improvement in the quality of capital. D) a decrease in labor productivity. 22) Disembodied technical change is one reason why A) human capital is more valued in an economy than physical capital. B) the quality of capital had decreased.…