Question 1

The size of Canada's labour force has doubled over the last 30 years.

Accepted Answer

A) True 
 B)False

Question 2

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S1 and D1 and that the market is in equilibrium at point e.What can you conclude has happened if a new wage rate of W2 and quantity of Qb occur?

Accepted Answer

A) Both the supply of and the demand for labour have decreased. 
B) The supply of labour has decreased and the demand has increased. 
C) The demand for labour has decreased and the supply has increased. 
D) W2 is a non-equilibrium wage rate that may be the result of successful bargaining by a strong trade union. 
A) Both the supply of and the demand for labour have decreased. 
B) The supply of labour has decreased and the demand has increased. 
C) The demand for labour has decreased and the supply has increased. 
D) W2 is a non-equilibrium wage rate that may be the result of successful bargaining by a strong trade union.

Question 3

Differentiate between a product market and a factor market.

Accepted Answer

A product market is a market w

Question 4

-Refer to the information above to answer this question.What quantity of labour will the firm employ if it maximizes its profits?

Accepted Answer

A) 2. 
B) 4. 
C) 6. 
D) 7. 
E) 8. 
A) 2. 
B) 4. 
C) 6. 
D) 7. 
E) 8.

Question 5

The figure below illustrates the demand for electrical engineers.

Accepted Answer

@#IMG-DLM& 
a)Draw in a supply curve that is a 45-

Question 6

Which of the following statements is correct?

Accepted Answer

A) A machine is a capital good but money is not. 
B) Money is a capital good but a machine in a factory is not. 
C) Both a machine and money are capital goods. 
D) Neither machines nor money are capital goods. 
A) A machine is a capital good but money is not. 
B) Money is a capital good but a machine in a factory is not. 
C) Both a machine and money are capital goods. 
D) Neither machines nor money are capital goods.

Question 7

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.
  
-What happens if the supply of labour increases more than does the demand for labour?

Accepted Answer

A) Wage rates will increase. 
B) Wages rates will decrease. 
C) The effect on wage rates is indeterminate. 
D) The quantity of hours worked will decline. 
A) Wage rates will increase. 
B) Wages rates will decrease. 
C) The effect on wage rates is indeterminate. 
D) The quantity of hours worked will decline.

Question 8

Which of the following would be most advantageous to a trade union or professional association?

Accepted Answer

A) The supply of labour is restricted. 
B) The demand for labour is decreased. 
C) The supply of labour increases by more than the demand increases. 
D) The demand for labour increases by more than the supply increases. 
A) The supply of labour is restricted. 
B) The demand for labour is decreased. 
C) The supply of labour increases by more than the demand increases. 
D) The demand for labour increases by more than the supply increases.

Question 9

"Since it is in the interest of fishers as a group not to over-exploit the stock of fish,conservation of fish stocks is not a problem." What is wrong with this statement?

Accepted Answer

A) It does not recognize the fact that the supply of fish is inelastic. 
B) It does not recognize the fact that conservation practices by an individual fisher are rational only if all fishers practice them. 
C) It does not recognize the fact that more and more fish are now raised on fish farms. 
D) It fails to take into account the necessary interest-rate discounting of the asset of fish stocks. 
A) It does not recognize the fact that the supply of fish is inelastic. 
B) It does not recognize the fact that conservation practices by an individual fisher are rational only if all fishers practice them. 
C) It does not recognize the fact that more and more fish are now raised on fish farms. 
D) It fails to take into account the necessary interest-rate discounting of the asset of fish stocks.

Question 10

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.
  
-Refer to the above information to answer this question.What is Nearly Done's total wage bill if the market wage rate is $8?

Accepted Answer

A) $16. 
B) $36. 
C) $48. 
D) $56. 
E) $66. 
A) $16. 
B) $36. 
C) $48. 
D) $56. 
E) $66.

Question 11

Although supply and demand analysis can be used to analyze the product market,it cannot be used to analyze the factor market.

Accepted Answer

A) True 
 B)False

Question 12

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.
  
-Refer to the above information to answer this question.Suppose that the market wage rate is $8,how much more labour will Nearly Done Inc.employ if the marginal product of labour doubles?

Accepted Answer

A) 0. 
B) 1. 
C) 2. 
D) 3. 
E) 7. 
A) 0. 
B) 1. 
C) 2. 
D) 3. 
E) 7.

Question 13

What is a 'common property' resource?

Accepted Answer

A resource not owned

Question 14

John Kenneth Galbraith is known for his theory regarding the replacement of entrepreneurs by bureaucrats.Explain the basis of Galbraith's argument.

Accepted Answer

· entrepreneurs are risk-takers.
· risk-

Question 15

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.
  
-What is real wage?

Accepted Answer

A) The nominal wage multiplied by the price level. 
B) The purchasing power,given a set of prices,of the nominal wage. 
C) The income received for the use of capital. 
D) The wage rate expressed as a dollar and cents figure. 
A) The nominal wage multiplied by the price level. 
B) The purchasing power,given a set of prices,of the nominal wage. 
C) The income received for the use of capital. 
D) The wage rate expressed as a dollar and cents figure.

Question 16

Explain how each of the following events affects the equilibrium wage and the equilibrium quantity of labour (assume all else is constant with each event).Be sure to explain whether demand for or supply of labour has changed.
(1)The price of output a firm produces rises.
(2)A leisure-hour provides greater marginal benefit.
(3)The marginal tax rate rises.
(4)New immigration laws restrict the hiring of illegal workers.
(5)A reduction in welfare benefits.
(6)The cost of machines falls (labour and machines are substitutes).
(7)Technology makes labour more productive.
(8)The price of the product a firm produced falls.

Accepted Answer

(1)The demand for labour rises.Both equi

Question 17

Which of the following statements best describes Schumpeter's view of profits?

Accepted Answer

A) Profits occur only in an economy when full employment is achieved. 
B) Competition within a capitalist economy would tend to result in zero economic profit. 
C) The source of profits,whatever level they may be,is the result of entrepreneurial activity. 
D) Profits occur only when the economy is in a boom. 
A) Profits occur only in an economy when full employment is achieved. 
B) Competition within a capitalist economy would tend to result in zero economic profit. 
C) The source of profits,whatever level they may be,is the result of entrepreneurial activity. 
D) Profits occur only when the economy is in a boom.

Question 18

-Refer to the information above to answer this question.Which of the following statements is correct regarding the firm's labour supply curve?

Accepted Answer

A) It is perfectly inelastic. 
B) It is perfectly elastic. 
C) It is upward-sloping. 
D) It is downward-sloping. 
A) It is perfectly inelastic. 
B) It is perfectly elastic. 
C) It is upward-sloping. 
D) It is downward-sloping.

Question 19

The typical range for the annual increase in labour productivity in Canada over the last 30 years has been between 3 and 5 percent.

Accepted Answer

A) True 
 B)False

Question 20

Compare a monopsonist to a firm in a competitive labour market.Which firm will pay a higher wage? Which would hire more labour?

Accepted Answer

A firm in a competitive market

The size of Canada's labour force has doubled over the last 30 years.

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S₁ and D₁ and that the market is in equilibrium at point e.What can you conclude has happened if a new wage rate of W₂ and quantity of Qb occur?

Differentiate between a product market and a factor market.

-Refer to the information above to answer this question.What quantity of labour will the firm employ if it maximizes its profits?

The figure below illustrates the demand for electrical engineers.

Which of the following statements is correct?

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What happens if the supply of labour increases more than does the demand for labour?

Which of the following would be most advantageous to a trade union or professional association?

"Since it is in the interest of fishers as a group not to over-exploit the stock of fish,conservation of fish stocks is not a problem." What is wrong with this statement?

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.What is Nearly Done's total wage bill if the market wage rate is $8?

Although supply and demand analysis can be used to analyze the product market,it cannot be used to analyze the factor market.

What is a 'common property' resource?

John Kenneth Galbraith is known for his theory regarding the replacement of entrepreneurs by bureaucrats.Explain the basis of Galbraith's argument.

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What is real wage?

Which of the following statements best describes Schumpeter's view of profits?

-Refer to the information above to answer this question.Which of the following statements is correct regarding the firm's labour supply curve?

The typical range for the annual increase in labour productivity in Canada over the last 30 years has been between 3 and 5 percent.

Compare a monopsonist to a firm in a competitive labour market.Which firm will pay a higher wage? Which would hire more labour?

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

The size of Canada's labour force has doubled over the last 30 years.

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S1 and D1 and that the market is in equilibrium at point e.What can you conclude has happened if a new wage rate of W2 and quantity of Qb occur?

Differentiate between a product market and a factor market.

-Refer to the information above to answer this question.What quantity of labour will the firm employ if it maximizes its profits?

The figure below illustrates the demand for electrical engineers.

Which of the following statements is correct?

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What happens if the supply of labour increases more than does the demand for labour?

Which of the following would be most advantageous to a trade union or professional association?

"Since it is in the interest of fishers as a group not to over-exploit the stock of fish,conservation of fish stocks is not a problem." What is wrong with this statement?

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.What is Nearly Done's total wage bill if the market wage rate is $8?

Although supply and demand analysis can be used to analyze the product market,it cannot be used to analyze the factor market.

What is a 'common property' resource?

John Kenneth Galbraith is known for his theory regarding the replacement of entrepreneurs by bureaucrats.Explain the basis of Galbraith's argument.

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What is real wage?

Which of the following statements best describes Schumpeter's view of profits?

-Refer to the information above to answer this question.Which of the following statements is correct regarding the firm's labour supply curve?

The typical range for the annual increase in labour productivity in Canada over the last 30 years has been between 3 and 5 percent.

Compare a monopsonist to a firm in a competitive labour market.Which firm will pay a higher wage? Which would hire more labour?

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

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S₁ and D₁ and that the market is in equilibrium at point e.What can you conclude has happened if a new wage rate of W₂ and quantity of Qb occur?