Explain what is meant by marginal product
What will be an ideal response?
Marginal product is the additional output that can be produced by adding one more unit of a specific input (all else equal).
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When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis, an increase in productivity will cause which of the following to occur?
A) The wage-setting and price-setting curves will both shift downward. B) The wage-setting and price-setting curves will both shift upward. C) The price-setting curve to shift downward, and no shift in the wage-setting curve. D) The wage-setting curve to shift upward, and the price-setting curve to shift downward. E) The wage-setting curve to shift downward, and the price-setting curve to shift upward.
In general, countries with lower rates of growth of labor productivity have
a. lower levels of productivity. b. higher levels of productivity. c. lower levels of educational attainment. d. higher levels of natural resource endowments.