When the amount of time that people spend on leisure changes with no change in labor productivity ________________________.

a movement along the PPF and a movement along the production function occur
a movement along the PPF occurs and the production function shifts outward
the PPF shifts outward and the production function shifts outward
the PPF shifts outward and a movement along the production function occurs

The country of Kemper employs 200 billion hours of labour per year and has real GDP of $6.8 trillion at point a. The government of Kemper passes a law that makes 4 years of tertiary education mandatory for all citizens. You would expect the economy to __________________.

remain at point a
move to point d
move to point c
move to point e

The country of Kemper employs 200 billion hours of labour per year and real GDP is $6.8 trillion at point a. As the population of Kemper increases and labour productivity does not change, the economy will __________________.

move to point c
move to point b
move to point e
remain at point a

The figure shows a country's production function. When the quantity of labour employed increases from 100 billion hours to 200 billion hours, the marginal product of labor equals _______________.

$30 an hour
$0.03 an hour
$3 an hour
$300 an hour

The figure shows a country's production function. As the quantity of labour employed increases, the marginal product of labour _________________.

cannot be calculated without more information
remains the same
diminishes
increases

The marginal product curve is the same as the ________________.

production possibility frontier
production function
supply of labour curve
demand for labour curve

A firm has a marginal product that is greater than the real wage rate. To maximize profit, the firm will __________________.

produce less output
raise prices
hire less labour
hire more labour

In the figure, when the real wage rate is $25 an hour, _______________________.

the supply of labour will decrease
the demand for labour will increase
a shortage of labour exists and the real wage rate will rise
a surplus of labour exists and the real wage rate will fall

If the effects of an increase in capital and advances in technology are greater than the effects of an increase in population, then you would predict a _________ in the real wage rate and _____________ in potential GDP.

rise; an increase
fall; a decrease
fall; an increase
rise; a decrease

In a market with job rationing, __________________.

job search is greater than it is at a full-employment equilibrium
the quantity of labour demanded increases
the quantity of labour supplied decreases
job search is less than it is at a full-employment equilibrium

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