Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 1RQ
To determine
Determining land rent with the help of demand – supply model.
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4. Suppose that the table below shows an economy's relationship between real output and the inputs
needed to produce that output: LO4
Input
Quantity
Real
GDP
150.0
$400,
112.5
300
75.0
200
a. What is productivity in this economy?
b. What is the per-unit cost of production if the price of each input unit is $2?
c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity.
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the economy's aggregate supply curve? What effect would this shift of aggregate supply have on the price
level and the level of real output?
d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 100
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production cost have on the economy's aggregate supply curve? What effect would this shift of aggregate
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2%
34
O 4%
O 5%
O 0 o o
D Question 26
A corporation issues a bond with a par value of $4,800 in one year. Assume that the bond is sold
today for $4,500. What is the interest rate received by the lender?
O 3.33%
O 11.11%
O 6.67%
6.25%
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Question 27
The U6 unemployment rate includes which individuals that are not included in the U3
unemployment rate?
O government employees
O people who volunteer
O self-employed individuals
O people who are working part-time but want full-time work
O members of the population that are under the age of 16
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