Crowdly

decrease national saving

What is the sum of the value added of all the firms?

increase national saving

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:

Name of company	Revenues	Cost of purchased inputs
Citrus Growers	$0.75	$0.00
Mildura Jam Company	$2.00	$0.75
The Corner Shop	$2.50	$2.00

$5.25

$4.50

$2.50

$2.75

According to the US version of Okun's law, each extra percentage point of ___ unemployment is associated with a ____ percentage point decrease in the output gap, measured in relation to potential output.

frictional; 2

cyclical; 2

cyclical; 4

frictional; 4

If a borrower and a lender agree to a loan at 5% when the inflation rate is 3%, then 5% is the ____ interest rate.

The opportunity cost of capital investment is the:

price of the firm's output

real interest rate

value of the marginal product of capital

value of the marginal product of labour

The following table reports prices and quantities of the final goods produced in an economy.

Using 2016 prices calculate the value of real GDP in 2015 and 2016 respectively?

2015 = $3,500 and 2016 = $4,200

2015 = $5,500 and 2016 = $4,200

2015 = $4,200 and 2016 = $6,600

2015 = $2,500 and 2016 = $5,500

2015 = $5,500 and 2016 = $6,600

The following table shows the investment and output options for an individual business. Employment of labour and technology is assumed to be constant.

The business operates in competitive product and factor markets. Its output sells for $5 per unit. The price of a new machine is $200. Machines depreciate at a rate of 3 percent and the real interest rate is 2 percent. How many machines will the business choose to invest in?

Dave's Mirror Company expects to sell $1 000 000 worth of mirrors and to produce $1 250 000 worth of mirrors in the coming year. The company purchases $300 000 of new equipment during the year. Sales for the year turn out to be $900 000. Actual investment by Dave's Mirror Company equals _____ and planned investment equals _______.

Which of the following is most likely to explain a rightward shift in the supply of labour curve?

A recession

A decline in the birth rate

The government raises the minimum school leaving age

The government raises the minimum retirement age

In the competitive model of the aggregate labour market, a result of collective bargaining by labour unions, the real wage is set at a level greater than the competitive real wage. This will:

make all labour force participants better off.

none of the above (or below).

make all labour force participants worse off.

force business to pay a real wage that is greater than the marginal product of labour.

result in an excess supply for labour.