Question :
16.3 Productivity and the Business Cycle
1) The amount of output : 1381235
16.3 Productivity and the Business Cycle
1) The amount of output produced by an average worker in one hour is
A) a production quota.
B) the marginal revenue product of labor.
C) the marginal product of labor.
D) labor productivity.
2) Productivity tends to
A) rise during contractions.
B) rise during expansions.
C) fall during expansions.
D) rise throughout the business cycle.
3) Productivity tends to
A) rise during contractions.
B) fall during expansions.
C) fall during contractions.
D) rise throughout the business cycle.
4) Nancy’s Nail Salon employs five workers. Each worker works eight hours per day. The five workers are able to serve 20 customers per day. The labor productivity is therefore ________ customer(s) per person/hour.
A) 0.5
B) 1
C) 2
D) 4
5) A firm is holding excess labor. This will
A) increase the amount of capital employed.
B) decrease the productivity of capital.
C) increase labor productivity.
D) reduce labor productivity.
6) During economic expansions,
A) employment rises by a higher percentage than output, and the ratio of output to workers falls.
B) output rises by a larger percentage than employment, and the ratio of output to workers rises.
C) employment rises by a larger percentage than output, and the ratio of output to workers rises.
D) output rises by a larger percentage than employment, and the ratio of output to workers falls.
7) During economic downswings,
A) output falls faster than employment, and the ratio of output to workers falls.
B) employment falls faster than output, and the ratio of output to workers falls.
C) employment falls faster than output, and the ratio of output to workers rises.
D) output falls faster than employment, and the ratio of output to workers rises.
8) When the economy is in a slump, labor productivity tends to fall because firms have
A) excess capital.
B) excess labor.
C) too little capital.
D) too little labor.
9) Which of the following statements is TRUE?
A) The long-run potential of the economy declines as output per worker falls during a recession.
B) The long-run potential of the economy increases as output per worker rises during an expansion.
C) The long-run potential of the economy increases as output per worker rises during an expansion, but the long-run potential of the economy doesn’t change as output per worker falls during a recession.
D) Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.
10) When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?
A) A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
B) A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job.
C) Firms are likely to meet some of the increase in output by reducing labor productivity.
D) Firms are likely to meet part of the increase in output by eliminating any excess capital they may have.
