Category: Economics

➤ How do economists measure the reported change in job counts over that period?
Economists use employment series such as payroll employment and household survey employment. Payroll counts record wage and salary jobs on business payrolls. Household surveys add self-employed and farm workers. Comparing these series helps show long-term trends while highlighting measurement differences and short-term volatility in job totals.

➤ How do you compute productivity per worker and per hour?
For productivity per worker, divide total chairs by number of workers: 70 ÷ 10 = 7 chairs per worker for the shift. For per-hour productivity, divide output by total labor hours: 70 ÷ (10 × 10) = 0.7 chairs per hour. These two measures give different practical views.

➤ How do you test whether two goods are substitutes or complements using cross-price elasticity?
Calculate cross-price elasticity: percent change in quantity demanded of good B divided by percent change in price of good A. A positive value means substitutes; a negative value means complements. The magnitude shows strength. Use sales or market data to estimate those percent changes accurately.

Question 6 (1 point)
If taxes were to decrease for a producer, ceteris paribus,
a supply would increase
b supply would decrease
c quantity supplied would increased
d quantity supplied would decrease

4. When is an interest rate considered constant?
An interest rate is constant when a contract specifies a fixed rate for its entire term, such as a fixed-rate bond or mortgage. Economists also assume constant rates in models or when a government pegs a rate. In reality, inflation, monetary policy, and market conditions usually make rates change over time.