1. a) What is the difference between unemployment rate and labor force participation rate?

b) Explain four factors that impacts the labor force of a country.

c) Kwame's employer increased his wages from GHC20 an hour to GHC25 an hour. He worked eight hours a day before the wage change but now choses to works 6 hours a day on average. Derive the labour supply curve for Kwame and explain the shape of the curve.

d) 20% of the 2,000,000 people who live in Ashaiman are children with 10% being aged. If a survey revealed that, apart from children and the aged, 20% of the people are neither looking for a job nor employed. What is the labor force participation rate in Ashaiman?

2. Consider a rm with the following Output and Marginal Product Number of Output Marginal Average Value of Value of worker (Units) Products Product Marginal Product Average employed (Units) (Units) (GhC) Product (GhC) 0 0 l 9 2 16 3 20 4 l9 5 17 6 l 5 7 l3 8 5 5 9 9 Assuming the price of output is SGhC. a. Fill in the blanks in the above table for the rm. b. With the aid of a graph, describe what happens to output as the rm hires more workers. c. If the average wage for a worker is 7'5th, what is the optimal level of employment