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- Which conclusion regarding the expansion of industrialization is most correct? Cottage industries experienced an increase in employment as commercial industries declined. Cottage industries required fewer skilled workers than commercial industries. Commercial industries reduced the real estate expenses required of cottage industries. Commercial industries changed the division of labor traditionally established by cottage industries.
- Which of the following are staff and volunteers responsible for? Select FOUR of the following options. __ D Know what to do if you discover a fire or hear the fire alarm D Know where the fire exits are D Be able to put out a fire D Keep fire doors closed to stop the spread of fire, heat or smoke D Report any ideas for reducing the risk of fires in your area
- What actions should you take if you hear a fire alarm? Select TWO of the following options. Leavelevacuate the building immediately Follow any instructions from fire marshalls/wardens and the emergency services Call your manager for advice Gather your belongings and leave/evacuate the building Submit
- Question 1 1(20marks/2 marks each) Indicate whether each of the following statements is True or False (Write the word in full) 1.1) The factor market can best be described as where households buy goods and services. 1.2) Potential GDP is A) another name for real GDP. 1.3) The higher the real wage rate, the higher the labor force participation rate. 1.4) The aggregate production function relating real GDP to labor hours has a positive slope and becomes less steep as employment increases. 1.5). The labor force is defined as the number of people over 16 years of age. 1.6) When the economy is at full employment the natural unemployment rate is equal to 0 percent 1.7) If the governmen t runs a budget deficit then national saving is negative. 1.8) As saving decreases disposable income increases. 1.9) The quantity of real money demanded is independent of the price level. | 1.10) When the interest rate is above the equilibrium interest rate there is an | excess quantity of money and people will buy bonds Question 2 (25 marks) a) "The velocity of circulation is the average speed with which money is loaned to businesses and households." Is the previous statement correct or incorrect? (6 marks) b) What is the relationship between net borrower.net lender, debtor nation and creditor nation? (6 marks) Page 14 of 15 FACULTY OF COMMERCE MENT AND LAW OLD AND NEW CURRICULUM MODULES c) Describe how open market operations change the quantity of money. (6 marks) d) Define the aggregate production function. Discuss why the aggregate production function exhibits diminishing returns. (7 marks) Question 3(15 marks) Suppose the working-age population is 150 million, the labor force is 125 million,and employment is 120 million. a) What is the unemployment rate? (5 marks) b) Now suppose students graduate from college and begin to look for jobs. What is the new unemploymen t rate if none of the students have found jobs yet? (5 marks) c) Suppose that all 2 million students find jobs. What is the unemployment rate now? (5 marks) Question 4 (40 marks) In the country of Midland, autonomous consumption expenditure is 60 million, and the marginal propensity to consume is 0.6. Investment is 110 million, government expenditure is 70million and there are no income taxes. Investment and government expenditure are constant-they do not vary with income. The nation does not trade with the rest of the world. a) Draw the aggregate expenditure curve. (15 marks) b) What is the autonomous aggregate expenditure? (5 marks) c) What is the size of the multiplier in Midland's economy? (5 marks) d) What is aggregate planned expenditure and what is happening to inventories when real GDP is 800 million? (10 marks) e) What is the economy's equilibrium aggregate expenditure? (5 marks)
- Globalization __ has manifested itself in the interdependence of financial markets, the increasing role of multinational corporations (MNCs). the transfer of technology,the increasing dependence of domestic markets and the necessary interdependence of monetary, fiscal, and regulatory policy. Adapted from "Globalization, Offishoring,and Multinational Companies: What Are the Questions and How Well Are We Doing in Answering Them?" presented by Ralph Kozlow U.S. Bureau of Economic Analysis, January 6, 2006 Based on the text.what has been a primary outcome of globalization?E.4.1 the creation of stronger protectionist policies to ensure the strength of domestic trade the strong association between international economic policy, technology and trade the movement of countries toward a common currency the abolition of the gold standard in a free market