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

a movement along the PPF and a movement along the production function occur
the PPF shifts outward and the production function shifts outward
a movement along the PPF occurs 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 college mandatory for all citizens. You would expect the economy to __________________.

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

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

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 labour equals _______________.

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

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

remains the same
diminishes
cannot be calculated without more information
increases

The marginal product curve is the same as the ________________.

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

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

hire less labour
produce less output
raise prices
hire more labour

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

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

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.

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

With a sticky wage rate, a decrease in the demand for labour brings __________.

a decrease in unemployment
an increase in unemployment
a natural rate of unemployment equal to zero
an increase in employment