WorksheetsMacroeconomic I (Tutorial 2)
Total questions: 10
Worksheet time: 6mins
An increase in the wage rate:
Will usually lead to more people employed
Will decrease total earnings of employees if the demand for labour is wage elastic
Is illegal in a free market
Will cause a shift in the demand for labour
With a downward sloping demand for labour and upward sloping supply of labour curve then a fall in demand for labour will lead to:
A lower equilibrium wage and lower quantity of labour employed
A lower equilibrium wage and higher quantity of labour employed
A higher equilibrium wage and higher quantity of labour employed
A higher equilibrium wage and lower quantity of labour employed
A profit maximizing firm will employ labour up to the point where:
Marginal revenue = marginal product
Marginal cost = marginal product
Marginal revenue product = average cost of labour
Marginal revenue product = marginal cost of labour
If the minimum wage is set above the equilibrium wage rate, then other things being equal:
There will be equilibrium in the labour market
There will excess demand in the labour market
There will be excess supply in the labour market
More people will be employed
Which of the following statements about a fixed input is true?
Its price is fixed.
The quantity of input that a firm can use in the long run is fixed.
The quantity of input that a firm can use in the short run is fixed.
The quantity of output that the firm can produce with it is fixed.
In production function as shown in the graph, what is the area from C to F?
Constant returns
Positive returns
Negative returns
Diminishing returns
Which one is not true?
Nd=PW
MC=MPNW
MPN=ΔYΔN
W=MPN×P
Each of the following statements includes two terms. In three cases, the two terms mean the same as each other. In which case do the two terms not mean the same as each other?
Nominal GDP and GDP at current prices.
Real GDP and GDP at constant prices.
The base period and the reference period.
Changes in real GDP and the GDP deflator.
Suppose year 1 is taken as a base period. Nominal GDP that year is £500 billion. By a later year 2, nominal GDP has reached £700 billion but the GDP deflator is 125. What will real GDP be each year?
£625 billion in year 1 and £560 billion in year 2.
£625 billion in year 1 and £700 billion in year 2.
£500 billion in year 1 and £560 billion in year 2.
£500 billion in year 1 and £700 billion in year 2.
In which of the following situations would real GDP increase while the price level stayed the same?
The aggregate demand and aggregate supply curves both shifted up by the same amount.
The aggregate demand and aggregate supply curves both shifted right by the same amount.
The aggregate demand curve stayed put but aggregate supply shifted right.
The aggregate demand curve shifted right but the aggregate supply curve stayed put.
