1) Since the marginal product of labor equals the change in the quantity of output divided by the change in the
quantity of labor, it stands to reason that:
a) a firm would never operate in the range where marginal product
1) A production possibilities frontier shows:
a) the market for a good or service.
b) the maximum attainable combinations of two goods that may be produced with available resources.
c) the act of buying and selling.
d) how un
ECON 2106 Chapter 12-14 Review
SI date: Tuesday 11/02
Next exam: 11/16
1. The city bus system charges lower fares to senior citizens than to other passengers.
Assuming that this pricing strategy increases the profits of the bus system, we can
Econ 3900 Practice questions
1. Assume the following model of the economy, with the price level fixed at 1.0:
C = 0.8(Y T)
I = 800 20r
Ms = 1,200
T = 1,000
G = 1,000
Ms/P = Md/P = 0.4Y 40r
Write a numerical formula for th
Econ 3900 Practice Question
1. Consider a closed economy to which the Keynesian-cross analysis applies.
Consumption is given by the equation C = 200 + 2/3(Y T). Planned investment is
300, as are government spending and taxes.
a. If Y is 1,500,
Econ 3900 Macroeconomics
Prof. Grace O
Practice Questions Chapter 7
1. Assume that a country's production function is Y = K1/2L1/2.
What is the per-worker production function y = f(k)?
Assume that the country possesses 40,000 units of capital and
Dr. Grace O
Practice Ch 6.
1. If the rate of job separation is 0.02 per month and the rate of job finding is 0.10 per month,
what is the natural rate of unemployment?
2. Changes in economic policies will frequently ha
1. In year 2007, price of shoes was $50. The same pair of shoes price has become $60 in
year 2008. What is the percentage increase of the shoes in 2008?
2. In year 2007, price of pizza was $20. The same pizza price has increased 25% ov
Prof. Grace O
- LR vs. SR (Classical vs. Keynesian)
- Model: assumptions, variables, interpretation within model
- NeoClassical Model (long run, but not too long)
1. Supply side
- returns to s
Identify the choice that best completes the statement or answers the question.
1. Refer to Figure 3-2. Suppose Wales must spend 2 hours to produce each spring. Then Wales
a. must spend 0.5 hours to produc