A marginal physical product marginal revenue b

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A marginal physical product × marginal revenue B marginal physical product ÷ price C total physical product × marginal cost D total physical product ÷ marginal cost 16 A firm currently employs 30 workers at a daily wage of $50 each. The marginal cost of employing one extra worker is $112 per day. By how much will the firm have to increase the daily wage in order to increase its labour force from 30 to 31 workers? A $2 B $4 C $62 D $112 17 In the diagram, HN is the initial supply of labour curve faced by a firm, and RM is its initial marginal cost of labour curve. X N M R H O W J K quantity of labour wage, cost of labour What will be the firm’s new labour supply curve if the workers join a trade union and achieve a union negotiated wage, OW? A RJX B HKX C WJM D WKN
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7 © UCLES 2018 9708/32/O/N/18 [Turn over 18 Output per worker in an industry increases more slowly than the industry’s total output. What could explain this? A a decrease in labour productivity B an increase in employment C an increase in overtime working D an increase in the hourly wage rate 19 On a diagram showing a production possibility curve, what definitely represents long-run economic growth? A a change in the slope of the curve B a movement from a point below the frontier to a point on the curve C a movement from one point to another along a given curve D an outward shift of the curve 20 When is economic growth most likely to promote economic development? A when it achieves maximum rates of extraction of raw materials B when it concentrates on increasing production C when it discovers valuable new resources in remote natural environments D when it provides the funds to finance cleaner production processes 21 Which items in the table are classified as foreign aid? foreign direct investment official development assistance portfolio investment flows A no no yes B no yes no C yes no yes D yes yes no
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8 © UCLES 2018 9708/32/O/N/18 22 Country X’s living standards were compared with country Y’s living standards using real GNP per head converted into US dollars. Country X was ranked above country Y. Which factor might have caused this ranking to be incorrect ? A Actual market exchange rates were used rather than purchasing power parity rates. B Government spending on transfer payments was higher in country Y than in country X. C Inflation was higher in country X than in country Y. D The distribution of income was more unequal in country X than in country Y. 23 In 2007 Turkey had a population of 73 m. Its labour force was 36 m, of which 12 m were trained for the primary sector and 24 m were trained for the secondary and tertiary sectors. The unemployment rate was 10%. What was the number of people unemployed? A 1.2 m B 2.4 m C 3.6 m D 7.3 m 24 An economy’s manufacturing share of real GDP fell from 30% in 1970 to 12% in 2016. What type of unemployment would result from this? A cyclical B frictional C structural D voluntary 25 In an open economy, when autonomous investment increases by 100, equilibrium national income increases by 300.
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