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Unformatted text preview: Quiz #1 1. In the long run, all of the following contribute to the improvement in labor productivity except: In the long run, all of the following contribute to the improvement in labor productivity except: a. new and improved technology b. higher skills and increased level of education c. fewer capital goods d. increases in imports of machinery 2. The improvement in labor productivity over the long run a. leads to higher unemployment rates b. may lead to shorter work week c. will produce increased environmental degradation d. both b. and c e. all of a., b., and c. above 3. In the last quarter of 2006, the level of economic activity in an economy grew by 2.5% while the employment level fell by 0.5%. During the same quarter, the productivity of labor a. Grew by 2% b. Fell by 2% c. Grew by 1.25% d. Fell by 1.25% e. None of the above 4. Robinson Crusoe (RC) lives alone on a deserted island. He can catch 2 fish, or sew 1/2 fishing net or build 3 fences in an hour. His workday consists of 6 hours. The Production Possibility Frontier for this one-person economy is: a. 2*Fish + 1/2 * Nets + 3 * Fences = 6 b. 2*Fish + 2 * Nets + 3 * Fences = 6 c. 1/2*Fish + 1/2 * Nets + 1/3 * Fences = 6 d. 3*Fish + 12 * Nets + 2 * Fences = 36 e. None of the above are correct 5. Robinson Crusoe (RC) lives alone on a deserted island. He can catch 2 fish, or sew 1/2 fishing net or build 3 fences in an hour. His workday consists of 6 hours. Now consider RC in question above. If Robinson Crusoe's productivity in catching fish doubles, you would expect a. That RC be able to only increase the production of fish in a day b. That RC be able to increase production of nets and fish but not production of...
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This note was uploaded on 04/07/2008 for the course ECON 201 taught by Professor Salehie during the Winter '08 term at University of Washington.
- Winter '08