Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 25, Problem 4SPPA
To determine
To explain:
The connection between labor hours, labor productivity and real GDP.
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Students have asked these similar questions
How do we measure labor productivity? How do changes in labor productivity affect the U.S. standard of living? Does an increase in labor productivity always leads to an increase in standard of living, explain?
The difference between output (production) and productivity is *
output measures the level of production while productivity measures production per input
productivity measures only the level of production while output measures production per input
production and productivity are the same thing
none of the above
Why does GDP depend on productivity in the long run?
Chapter 25 Solutions
Foundations of Economics (8th Edition)
Ch. 25 - Prob. 1SPPACh. 25 - Prob. 2SPPACh. 25 - Prob. 3SPPACh. 25 - Prob. 4SPPACh. 25 - Prob. 5SPPACh. 25 - Prob. 6SPPACh. 25 - Prob. 7SPPACh. 25 - Prob. 8SPPACh. 25 - Prob. 9SPPACh. 25 - Prob. 10SPPA
Ch. 25 - Prob. 11SPPACh. 25 - Prob. 12SPPACh. 25 - Prob. 1IAPACh. 25 - Prob. 2IAPACh. 25 - Prob. 3IAPACh. 25 - Prob. 4IAPACh. 25 - Prob. 5IAPACh. 25 - Prob. 6IAPACh. 25 - Prob. 7IAPACh. 25 - Prob. 8IAPACh. 25 - Prob. 9IAPACh. 25 - Prob. 10IAPACh. 25 - Prob. 1MCQCh. 25 - Prob. 2MCQCh. 25 - Prob. 3MCQCh. 25 - Prob. 4MCQCh. 25 - Prob. 5MCQCh. 25 - Prob. 6MCQCh. 25 - Prob. 7MCQCh. 25 - Prob. 8MCQ
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- Explain the circular flow of economic activityarrow_forwardSuppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?arrow_forwardWhat are the effects of an increase in labor productivity on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?arrow_forward
- Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.arrow_forwardwhy do economist believe there is a strong correlation between productivity and the standard of living?arrow_forwardDuring the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?arrow_forward
- Suppose an economy's real GDP is $5,000 billion. There are 125 million workers, each working an average of 2,000 hours per year. a. What is labor productivity per hour in this economy?arrow_forwardThe graphs show the productivity curve for an economy. In the left graph show the effect of an increase in physical capital. Draw either a new productivity curve or an arrow along the curve showing the direction of change. In the right graph, show the effect of an increase in human capital. Draw either a new productivity curve labeled PC, or an arrow along the curve showing the direction of change. >>> Draw only the objects specified in the question. Real GDP per hour of labor (2009 dollars) O 32- Real GDP per hour of labor (2009 dollars) o 32- 28- PCo 28- PCo 24- 24- 20- 20- 16- 16- 12- 12- 8- 8- 4- Nextarrow_forwardWhat correlation lies between productivity and the standard of living?arrow_forward
- Which of the below actions is likely to LOWER labor productivity and lower the economy's GDP (the gross domestic product and the size of the economy)? A) Hiring lots of workers with lower skills and using less machinery, computerization, tools, and equipment. B) Shifting from labor-intensive technology to more advanced technology that uses less worker-time to produce a set quantity of output. C) Greater investment in physical capital such as better and more advanced machinery and tools (physical capital). D) Better and higher education and training for workers.arrow_forwardReal GDP per person is equal to: a. average labour productivity multiplied by the share of the population employed b. average labour productivity multiplied by the total population c. average labour productivity multiplied by the share of the population unemployed d.average labour productivity multiplied by disposable incomearrow_forwardEach of the following is generally considered to be a factor of production EXCEPT- capital money technical knowledge laborarrow_forward
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