The tables set out information about the economy of Athabasca. Table 1 Production Function Suppose the labor force participation rate of Athabasca decreases. Labor hours Real GDP (millions) (millions of dollars) 1 19 37 When the labor force participation rate of Athabasca decreases, employment 3. 54 70 85 A. does not change O B. decreases Table 2 Labor Market Quantity of labor demanded Quantity of labor supplied (millions of hours per year) Real wage O C. increases rate O D. either increases or decreases, but we don't know for sure (dollars per hour) 19 1 When the labor force participation rate of Athabasca decreases, potential GDP 18 2 4. and the real wage rate 17 16 4. O A. increases; increases 15 OB. decreases; increases OC. increases; decreases OD. decreases; decreases
The tables set out information about the economy of Athabasca. Table 1 Production Function Suppose the labor force participation rate of Athabasca decreases. Labor hours Real GDP (millions) (millions of dollars) 1 19 37 When the labor force participation rate of Athabasca decreases, employment 3. 54 70 85 A. does not change O B. decreases Table 2 Labor Market Quantity of labor demanded Quantity of labor supplied (millions of hours per year) Real wage O C. increases rate O D. either increases or decreases, but we don't know for sure (dollars per hour) 19 1 When the labor force participation rate of Athabasca decreases, potential GDP 18 2 4. and the real wage rate 17 16 4. O A. increases; increases 15 OB. decreases; increases OC. increases; decreases OD. decreases; decreases
Chapter1: Making Economics Decisions
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Transcribed Image Text:The tables set out information about the economy of Athabasca.
Table 1 Production Function
Suppose the labor force participation rate of Athabasca decreases.
Labor hours
Real GDP
(millions)
(millions of dollars)
1
19
37
When the labor force participation rate of Athabasca decreases,
employment
3.
54
70
85
A. does not change
O B. decreases
Table 2 Labor Market
Quantity of
labor demanded
Quantity of labor
supplied
(millions of hours per year)
O C. increases
Real wage
rate
O D. either increases or decreases, but we don't know for sure
(dollars per hour)
19
When the labor force participation rate of Athabasca decreases,
potential GDP
18
2
4
and the real wage rate
17
16
4
O A. increases; increases
15
O B. decreases; increases
OC. increases; decreases
O D. decreases; decreases
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