Refer to Figure 2-6. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?

Suppose that 50 percent of the part-time workers of Metropolis are looking for full-time jobs

Given the data in Table 6.1, if these workers were counted as not employed and looking for work, the unemployment rate of Metropolis would be approximately A) 6 percent. B) 13 percent. C) 16 percent. D) 21 percent.

Suppose the marginal product of labor in the economy is given by MPN = 0.002(16,000 - N), while the supply of labor is 1000 + 1000w

(a) Find the market-clearing real wage rate and level of employment. (b) What happens to the wage rate and employment if wealth rises, reducing the supply of labor to 500 + 1000w? (c) What happens to the wage rate and employment if after wealth has risen as in part (b), there is a productivity shock that increases the marginal product of labor to MPN = 0.0025(16,000 - N)?