Answer each of the following questions in full sentences. Use a graph if it helps with your explanation.
Define and explain Frictional, Structural and Cyclical unemployment.
Explain the difference between a Normative and a Positive statement. Why is this important?
Explain the basic Consumption – Leisure choice model.
Explain the importance of the slope and the curvature of the isoquant on a graph measuring pairs of capital and labour.
Show and explain the difference in the wage – dirt curve when there are identical workers and identical firms.