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

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
a movement along the PPF and a movement along the production function occur

The country of Kemper employs 200 billion hours of labor 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 d
move to point c
remain at point a
move to point e

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

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

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

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

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

cannot be calculated without more information
diminishes
remains the same
increases

The marginal product curve is the same as the ________________.

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

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

hire less labor
hire more labor
raise prices
produce less output

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

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

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; a decrease
fall; a decrease
rise; an increase

In a market with job rationing, __________________.

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

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