QUESTION ONE a) When do individual(s) belong to a labour force of a country? Does the size of the labour force say something about the intensity of work in the labour market? Explain. b) Use the knowledge of economics to discuss factors to analyse factors that affect people’s’ decision to work. c) When is the firm operating in the short run and when does it operate in the long run? d) Discuss the factor(s) that determine how many workers the firm wishes to hire in the long run. e) In words, explain the difference between real and nominal wages. f) Suppose a firm purchases labour in a competitive labour market and sells its product in a competitive product market. The firm’s elasticity of demand for labour is 0.4. Suppose further that the wage increases by 5 percent. What will happen to the amount of labour hired by the firm?
QUESTION ONE
a) When do individual(s) belong to a labour force of a country? Does the size of the labour force say something about the intensity of work in the labour market? Explain.
b) Use the knowledge of economics to discuss factors to analyse factors that affect people’s’ decision to work.
c) When is the firm operating in the short run and when does it operate in the long run?
d) Discuss the factor(s) that determine how many workers the firm wishes to hire in the long run.
e) In words, explain the difference between real and nominal wages.
f) Suppose a firm purchases labour in a competitive labour market and sells its product in a competitive product market. The firm’s
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