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.
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