Question 1

All of the following except one are valid explanations for the existence of profits in a capitalistic economy.Which is the exception?

Accepted Answer

A) The innovations of the entrepreneur. 
B) A growing,dynamic economy that creates periods of disequilibrium. 
C) The fact that the MRPk is positive. 
D) The existence of oligopolies and monopolies that inhibit the natural tendency for profits to be competed away. 
A) The innovations of the entrepreneur. 
B) A growing,dynamic economy that creates periods of disequilibrium. 
C) The fact that the MRPk is positive. 
D) The existence of oligopolies and monopolies that inhibit the natural tendency for profits to be competed away. C

Question 2

Suppose that the price of oil today is $20 and the interest rate is 5%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If 2 years from now,the price of oil is $21.50,from the economist's point of view which of the following statements is correct?

Accepted Answer

A) The rate of oil extraction has been too slow. 
B) The rate of oil extraction has been too rapid. 
C) The rate of oil extraction has been exactly right. 
D) The rate of oil extraction has been either exactly right or too slow but it definitely could not have been too rapid. 
A) The rate of oil extraction has been too slow. 
B) The rate of oil extraction has been too rapid. 
C) The rate of oil extraction has been exactly right. 
D) The rate of oil extraction has been either exactly right or too slow but it definitely could not have been too rapid. B

Question 3

The table below shows some data for the labour market in the country of Maulani.
   a)Given Quantity Demand 1 and assuming that the Krinkles is operating in a perfectly competitive labour market,what will it have to pay for labour?
b)If,instead,Krinkles was a monopsonist,would it hire more or less labour,and would the wage rate be higher or lower?
Now assume that the quantity of labour demanded increases as shown in the last column on the left.
c)Given the same conditions as in a)above,what is your answer to a)now?

Accepted Answer

a)$14
b)It would hire less labour at a lower wage.
c)$16

Question 4

Through the use of a graph,illustrate the world's supply of oil.

Accepted Answer

The answer of Through the use of a graph,illustrate the...

Question 5

-All of the following except one are valid explanations of how unions can raise the wages of their members.Which is the exception?

Accepted Answer

A) By encouraging firms to employ more workers. 
B) By increasing the demand for their members through advertising the employer's product. 
C) By increasing the demand for their members through advertising their members' skills. 
D) By encouraging the government to establish legal qualifications,thereby restricting the supply of labour. 
E) By negotiating a fixed wage rate above equilibrium. 
A) By encouraging firms to employ more workers. 
B) By increasing the demand for their members through advertising the employer's product. 
C) By increasing the demand for their members through advertising their members' skills. 
D) By encouraging the government to establish legal qualifications,thereby restricting the supply of labour. 
E) By negotiating a fixed wage rate above equilibrium.

Question 6

Differentiate between marginal revenue and marginal revenue product.

Accepted Answer

Marginal revenue is the additi

Question 7

What is the most likely effect of an increase in the demand for a particular type of labour?

Accepted Answer

A) The wage rate for that type of labour will rise,and the quantity hired will decrease. 
B) The wage rate for that type of labour will rise,and the quantity hired will also increase. 
C) The wage rate for that type of labour will rise,but the quantity hired will remain unchanged. 
D) The wage rate for that type of labour will fall,and the quantity hired will increase. 
A) The wage rate for that type of labour will rise,and the quantity hired will decrease. 
B) The wage rate for that type of labour will rise,and the quantity hired will also increase. 
C) The wage rate for that type of labour will rise,but the quantity hired will remain unchanged. 
D) The wage rate for that type of labour will fall,and the quantity hired will increase.

Question 8

Which of the following statements best describes Schumpeter's view of the source of economic profits in capitalism?

Accepted Answer

A) Innovations of the entrepreneur are the source of economic profits in capitalism. 
B) Government regulations are the source of economic profits in capitalism. 
C) Monopoly power of big businesses is the source of economic profits in capitalism. 
D) Impersonal forces of the technostructure are the source of economic profits in capitalism 
A) Innovations of the entrepreneur are the source of economic profits in capitalism. 
B) Government regulations are the source of economic profits in capitalism. 
C) Monopoly power of big businesses is the source of economic profits in capitalism. 
D) Impersonal forces of the technostructure are the source of economic profits in capitalism

Question 9

What two factors determine the optimum rate of oil extraction?

Accepted Answer

· the rate at which

Question 10

When is the marginal revenue product of a factor at a maximum?

Accepted Answer

A) When its marginal product is at a maximum. 
B) When the firm's total product is at a maximum. 
C) When its marginal product is at a minimum. 
D) When both its marginal product and the firm's total product are at a maximum. 
E) When average product is at its maximum. 
A) When its marginal product is at a maximum. 
B) When the firm's total product is at a maximum. 
C) When its marginal product is at a minimum. 
D) When both its marginal product and the firm's total product are at a maximum. 
E) When average product is at its maximum.

Question 11

Joseph Schumpeter argued that the engine of growth and development is the capitalist system.What arguments did Schumpeter offer to support his views?

Accepted Answer

· the innovations of the entrepreneur ar

Question 12

For the following diagram for the market for labour,what areas represent
a)economic rent?
b)transfer earnings?

Accepted Answer

The answer of For the following diagram for the market...

Question 13

Suppose that the current price of oil is $60 a barrel and the interest rate is 3%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If two years from now the economist for the National Petroleum company believes that the rate of oil extraction is exactly right,believes that the rate of oil extraction has been too rapid,what would be the likely price for a barrel of oil at that time?

Accepted Answer

A) Above $63.60 a barrel 
B) $63.60 a barrel 
C) Below $63.60 a barrel 
D) Above $65 a barrel 
A) Above $63.60 a barrel 
B) $63.60 a barrel 
C) Below $63.60 a barrel 
D) Above $65 a barrel

Question 14

Suppose the nominal wage is $30 per hour and the price level is 1.5.
a)What is the real wage rate?
b)If the nominal wage increased by 5%,what is the new value of the real wage rate?
c)If the price level increased by 5%,what is the new value of the real wage rate?
d)If,instead,both the price level and nominal wage increased by 5%,what is the new value of the real wage rate?

Accepted Answer

a)$20.00
b

Question 15

What is the term for the effect of a rise in total output leading to an increase in the demand for labour?

Accepted Answer

A) The crowding-out effect. 
B) The factor substitution effect. 
C) The real-balances effect. 
D) The factor output effect. 
A) The crowding-out effect. 
B) The factor substitution effect. 
C) The real-balances effect. 
D) The factor output effect.

Question 16

The fact that neither of the authors works weekends at McDonald's demonstrates that they both value an extra hour of leisure over the added hourly income that they could earn.

Accepted Answer

A) True 
 B)False

Question 17

Explain why Canada's labour force has grown considerably over the last 35 years?

Accepted Answer

There are two explanations for the growt

Question 18

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.
  
-What is the term for the total number of people over fifteen who are willing and able to be employed?

Accepted Answer

A) The labour market. 
B) The labour force. 
C) The labour force supply. 
D) The labour force population. 
A) The labour market. 
B) The labour force. 
C) The labour force supply. 
D) The labour force population.

Question 19

Who were the Luddites?

Accepted Answer

A) The name of a group of workers who supported technological change. 
B) The name of a group of workers who favoured increased trade with North America. 
C) The name of a group of industrialists who were anti-free traders. 
D) The name of a group of workers who fought the introduction of machines. 
A) The name of a group of workers who supported technological change. 
B) The name of a group of workers who favoured increased trade with North America. 
C) The name of a group of industrialists who were anti-free traders. 
D) The name of a group of workers who fought the introduction of machines.

Question 20

Which of the following is a non-renewable natural resource?

Accepted Answer

A) Water. 
B) Oil. 
C) Wild fish. 
D) Trees. 
A) Water. 
B) Oil. 
C) Wild fish. 
D) Trees.

All of the following except one are valid explanations for the existence of profits in a capitalistic economy.Which is the exception?

Suppose that the price of oil today is $20 and the interest rate is 5%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If 2 years from now,the price of oil is $21.50,from the economist's point of view which of the following statements is correct?

Through the use of a graph,illustrate the world's supply of oil.

-All of the following except one are valid explanations of how unions can raise the wages of their members.Which is the exception?

Differentiate between marginal revenue and marginal revenue product.

What is the most likely effect of an increase in the demand for a particular type of labour?

Which of the following statements best describes Schumpeter's view of the source of economic profits in capitalism?

What two factors determine the optimum rate of oil extraction?

When is the marginal revenue product of a factor at a maximum?

Joseph Schumpeter argued that the engine of growth and development is the capitalist system.What arguments did Schumpeter offer to support his views?

For the following diagram for the market for labour,what areas represent a)economic rent? b)transfer earnings?

What is the term for the effect of a rise in total output leading to an increase in the demand for labour?

The fact that neither of the authors works weekends at McDonald's demonstrates that they both value an extra hour of leisure over the added hourly income that they could earn.

Explain why Canada's labour force has grown considerably over the last 35 years?

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -What is the term for the total number of people over fifteen who are willing and able to be employed?

Who were the Luddites?

Which of the following is a non-renewable natural resource?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

International Trade

Filters

Exam 12: The Factors of Production

All of the following except one are valid explanations for the existence of profits in a capitalistic economy.Which is the exception?

Suppose that the price of oil today is $20 and the interest rate is 5%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If 2 years from now,the price of oil is $21.50,from the economist's point of view which of the following statements is correct?

Through the use of a graph,illustrate the world's supply of oil.

-All of the following except one are valid explanations of how unions can raise the wages of their members.Which is the exception?

Differentiate between marginal revenue and marginal revenue product.

What is the most likely effect of an increase in the demand for a particular type of labour?

Which of the following statements best describes Schumpeter's view of the source of economic profits in capitalism?

What two factors determine the optimum rate of oil extraction?

When is the marginal revenue product of a factor at a maximum?

Joseph Schumpeter argued that the engine of growth and development is the capitalist system.What arguments did Schumpeter offer to support his views?

For the following diagram for the market for labour,what areas represent a)economic rent? b)transfer earnings?

What is the term for the effect of a rise in total output leading to an increase in the demand for labour?

The fact that neither of the authors works weekends at McDonald's demonstrates that they both value an extra hour of leisure over the added hourly income that they could earn.

Explain why Canada's labour force has grown considerably over the last 35 years?

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -What is the term for the total number of people over fifteen who are willing and able to be employed?

Who were the Luddites?

Which of the following is a non-renewable natural resource?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

International Trade

Filters