ECONOMIC INDICATORS – Labor, GDP, and the Firm
ECONOMIC INDICATORS –
Labor, GDP, and the Firm
The most important resource for all firms is labor. In this SLP, we will look at the labor decisions of the firm. Address the following questions in a 3- to 4-page essay, double spaced, typed, APA format.
- Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 5.6% (December 2014). Economists have identified three types of unemployment. Describe in your own words. Which type would affect the Ford Motor Company? Explain.
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Answer the following questions concerning the U.S. GDP:
a. If a U.S. firm hires foreign workers abroad, would these wages count in the U.S. GDP? (i.e. an Indian citizen working in a call center for Microsoft in India) Why or why not?
b. If Ford Motor Company decides to open a production facility in China, would this be counted in the U.S. GDP?
- Based on the economic indicators studied in this module, what are your forecasts for Ford Motor Company in terms of profit, employment, and production?
Assignment Expectations – ONLINE RESOURCES with Links ONLY
Use concepts from the modular background readings, as well as any good-quality resources you find from the online library or other Internet search engines. Be sure to cite all sources within the text and provide a reference list at the end of the paper.
Length: 3-4 pages, double-spaced and typed.
The following items will be assessed:
· Your ability to perform an economic analysis of a firm of your own choice.
· Some in-text references to the modular background materials
· The essay should address each element of the assignment. Remember to support your answers with solid references.
Production, Unemployment, and Inflation, Podcast. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=11636
Production, Unemployment, and Inflation, Interactive Tutorial. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12299
