NCSU EC 202 Exam 2 Preparation Guide

NCSU EC 202 Exam 2 Preparation Guide.




1. Per capita GDP formula GDP/total population

2. labor force participation rate formula Labor force/adult population

3. What causes an increase in the standard labor productivity
of living?
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, NCSU EC 202 Exam 2 Preparation Guide.

4. Human capital the skills and knowledge gained by a
worker through education and
experience (education)

5. Physical capital the human-made objects used to create
other goods and services (plant and
equipment)

6. Technological change a positive or negative change in the ability
of a firm to produce a given level of
output with a given quantity of inputs

7. labor force formula LF = Employed + Unemployed

8. unemployment rate formula (Number of unemployed/Labor Force) x
100

(Number of unemployed/Employed +
Unem- ployed) x 100

9. The Business Cycle periodic expansion and contraction of the
econ- omy

10. natural rate of unemployment the unemployment rate that arises from
the ef-
fects of frictional plus structural unemployment

11. Causes of unemployment unemployment insurance, unions,
minimum wage, eflciency wage,
structural unemploy- ment (tech
change), frictional unemployment (better
job opp)




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