Part I. GDP 1. Describe GDP 2. Which of the GDP components is the highest? 3. De

Part I. GDP
1. Describe GDP
2. Which of the GDP components is the highest?
3. Define per Capita GDP? does this variable good enough to describe the well being of society.
4. Why do you thing GDP figures need to be taken with a “grain of salt.” Compare GDP per capita between China and and USA on one hand and USA and Kuwate.
Part II. Production and Productivity
1. Define production function. What happens to the production function overtime when there is improvement in technology? What happens to the production function when a product is less and less needed such as “asbestos,” “whole milk”, “foods with high calories”?
2. Consider agribusiness product “corn.” What factors influence farmers to produce corn?
3. What kind of technology do you think is importantant in the production of corn?
4. Visit the Labor Productivity and Costs section of the Bureau of Labor Statistics website (www.bls.gov/lpc/). (copy and past to browser)
What is productivity according to the video posted on the website.
Observe the growth rate of labor productivity (output per hour) in the U.S. Does the data show increasing or decreasing productivity?
Based on reported data in the data tab, what is happening in the unemployment rate? What is the latest unemploymnet rate in the US economy

Part II. Competetion
1. Describe market structure
2. What are the difference between the four market structures?
3. Is pricing efficiency better in monopoly or perfect competition?