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Important factor of production for all firms

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Reference no: EM131911618

Firm Wal-Mart

  1. 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.  Which type would affect your firm? Explain.
  2. 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 your firm decides to open a production facility in China, would this be counted in the U.S. GDP?

Reference no: EM131911618

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