Question 1

Through the use of a graph,illustrate the relationship between common property resources and deadweight loss

Accepted Answer

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

Question 2

Suppose that the current price of oil is $60 a barrel and the present interest rate is 3%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If the economist for the National Petroleum company believes that the rate of oil extraction is exactly right,what should be the price for a barrel of oil one year from now?

Accepted Answer

A) $60 
B) $61.8 
C) $63 
D) $65.5 
A) $60 
B) $61.8 
C) $63 
D) $65.5

Question 3

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.
  
-Suppose that the supply of labour is upward sloping and the marginal product of labour increases.Which of the following statements is correct?

Accepted Answer

A) The wage rate will increase. 
B) The wage rate will decrease. 
C) The supply of labour curve will shift to the left. 
D) The supply of labour curve will shift to the right. 
A) The wage rate will increase. 
B) The wage rate will decrease. 
C) The supply of labour curve will shift to the left. 
D) The supply of labour curve will shift to the right.

Question 4

The argument that technological change creates jobs assumes that:

Accepted Answer

A) The factor substitution effect outweighs the factor output effect. 
B) The factor output effect outweighs the factor substitution effect. 
C) The real wage rate increases faster than the nominal wage rate. 
D) The level of human capitol in the economy is increasing. 
A) The factor substitution effect outweighs the factor output effect. 
B) The factor output effect outweighs the factor substitution effect. 
C) The real wage rate increases faster than the nominal wage rate. 
D) The level of human capitol in the economy is increasing.

Question 5

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.
  
-If trend lines representing Canada's real GDP per hour and the real hourly wage in Canada were plotted over a period of the last 50 years,what type of correlation would it show?

Accepted Answer

A) A very close correlation for the whole period. 
B) A very close correlation for the first twenty five years followed by the real hourly wage rate raising significantly above real GDP per hour. 
C) A very close correlation for the first twenty five years followed by the real GDP per hour raising significantly above real hourly wage rate. 
D) A gradual convergence of the two trends starting from the position of the real hourly wage rate being significantly above real GDP per hour. 
A) A very close correlation for the whole period. 
B) A very close correlation for the first twenty five years followed by the real hourly wage rate raising significantly above real GDP per hour. 
C) A very close correlation for the first twenty five years followed by the real GDP per hour raising significantly above real hourly wage rate. 
D) A gradual convergence of the two trends starting from the position of the real hourly wage rate being significantly above real GDP per hour.

Question 6

-All of the following,expect one,are examples of how a trade union or professional association successfully restricts the supply of labour available.Which is the exception?

Accepted Answer

A) Only licensed M.D.s (doctors)can practice medicine. 
B) Only licensed pipe-fitters can open a gas line. 
C) Only members of the Bar can argue a case in court. 
D) Only individuals with a PhD can be employed at a university. 
E) The government imposes a minimum wage law. 
A) Only licensed M.D.s (doctors)can practice medicine. 
B) Only licensed pipe-fitters can open a gas line. 
C) Only members of the Bar can argue a case in court. 
D) Only individuals with a PhD can be employed at a university. 
E) The government imposes a minimum wage law.

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 determines the productivity of labour?

Accepted Answer

A) The quantity of capital that labour has to work with. 
B) The quality of the labour itself. 
C) The state of technology. 
D) The quantity of labour employed. 
A) The quantity of capital that labour has to work with. 
B) The quality of the labour itself. 
C) The state of technology. 
D) The quantity of labour employed.

Question 8

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.
  
-Which of the following in the correct statement regarding the change that has taken place in Canada's percentage of the (labour force)population which is in the labour force since 1950?

Accepted Answer

A) The male participation rate has decreased while the female participation rate has increased. 
B) The female participation rate has decreased while the male participation rate has increased. 
C) Both the male and female rates have decreased. 
D) Both the male and female rates have increased. 
A) The male participation rate has decreased while the female participation rate has increased. 
B) The female participation rate has decreased while the male participation rate has increased. 
C) Both the male and female rates have decreased. 
D) Both the male and female rates have increased.

Question 9

Suppose that the current price of oil is $60 a barrel and the interest rate is 3%.If the National Petroleum company extracts and sells its oil at $60 a barrel today and the revenue is invested,what will be its value per barrel at the end of year 2?

Accepted Answer

A) $60 
B) $63 
C) $63.6 
D) $66 
A) $60 
B) $63 
C) $63.6 
D) $66

Question 10

All of the following statements,except one,are correct concerning the labour market for high-profile professional athletes.Which is the exception?

Accepted Answer

A) The supply is inelastic. 
B) The wage rate is demand-driven. 
C) There is an element of economic rent in their pay. 
D) There is no transfer earnings involved in their pay. 
A) The supply is inelastic. 
B) The wage rate is demand-driven. 
C) There is an element of economic rent in their pay. 
D) There is no transfer earnings involved in their pay.

Question 11

What is a common property resource?

Accepted Answer

A) Any natural resource such as iron ore. 
B) Any resource openly bought and sold in the market place. 
C) Any resource supplied by the government. 
D) Any resource not owned by an individual or a firm. 
A) Any natural resource such as iron ore. 
B) Any resource openly bought and sold in the market place. 
C) Any resource supplied by the government. 
D) Any resource not owned by an individual or a firm.

Question 12

Table 12.3,which is data for the firm Skipper the Shoe Maker.
Table 12.3
  
-Use Table 12.3 to answer this question.What is the marginal revenue product of the 4th hour of labour?

Accepted Answer

A) 18 units of output. 
B) 90 units of output. 
C) $36. 
D) $180. 
A) 18 units of output. 
B) 90 units of output. 
C) $36. 
D) $180.

Question 13

-Which of the following statements is correct regarding an individual firm which obtains its labour in a perfectly competitive labour market?

Accepted Answer

A) It faces a downward-sloping labour demand curve and a upward-sloping labour supply curve. 
B) It faces an upward-sloping labour demand curve and a downward-sloping labour supply curve. 
C) It faces a downward-sloping labour demand curve and a horizontal labour supply curve. 
D) It faces a horizontal labour demand curve and a upward-sloping labour supply curve. 
A) It faces a downward-sloping labour demand curve and a upward-sloping labour supply curve. 
B) It faces an upward-sloping labour demand curve and a downward-sloping labour supply curve. 
C) It faces a downward-sloping labour demand curve and a horizontal labour supply curve. 
D) It faces a horizontal labour demand curve and a upward-sloping labour supply curve.

Question 14

Refer to the graph above to answer this question.Which of the following statements is correct?

Accepted Answer

A) If demand is D1,land is free. 
B) If demand is D2,rent is R2. 
C) If demand is D3,rent is R3. 
D) If demand is D1,rent is R1. 
A) If demand is D1,land is free. 
B) If demand is D2,rent is R2. 
C) If demand is D3,rent is R3. 
D) If demand is D1,rent is R1.

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.
  
-Refer to the information above to answer this question.What is the firm's total revenue if the firm maximizes its profits?

Accepted Answer

A) $20. 
B) $120. 
C) $192. 
D) $250. 
E) $325. 
A) $20. 
B) $120. 
C) $192. 
D) $250. 
E) $325.

Question 16

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.
  
-Refer to the above information to answer this question.What quantities of labour will Nearly Done Inc.definitely not employ regardless of the market wage rate?

Accepted Answer

A) 8,9 or 10. 
B) 9 or 10. 
C) 1 or 2. 
D) 1,2 or 3. 
E) Cannot be determined. 
A) 8,9 or 10. 
B) 9 or 10. 
C) 1 or 2. 
D) 1,2 or 3. 
E) Cannot be determined.

Question 17

All of the following statements,except one,are correct when a trade union successfully imposes a wage rate above equilibrium.Which is the exception?

Accepted Answer

A) There will be more workers willing to work than are hired. 
B) The firm's total wage bill will definitely be higher. 
C) The average firm is not operating in a competitive factor market. 
D) The quantity of workers hired will be less after the imposition of the higher wage than it was before. 
E) Neither the demand for nor the supply of labour has changed. 
A) There will be more workers willing to work than are hired. 
B) The firm's total wage bill will definitely be higher. 
C) The average firm is not operating in a competitive factor market. 
D) The quantity of workers hired will be less after the imposition of the higher wage than it was before. 
E) Neither the demand for nor the supply of labour has changed.

Question 18

Refer to the graph above to answer this question.Which of the following statements is correct?

Accepted Answer

A) The supply of land is perfectly elastic. 
B) The shift from D2 to D3 illustrates a decrease in demand. 
C) D1,D2 and D3 are all perfectly inelastic demand curves. 
D) The rent is demand-driven. 
E) The supply of land is rent-driven. 
A) The supply of land is perfectly elastic. 
B) The shift from D2 to D3 illustrates a decrease in demand. 
C) D1,D2 and D3 are all perfectly inelastic demand curves. 
D) The rent is demand-driven. 
E) The supply of land is rent-driven.

Question 19

All of the following except one are true statements about the MRP.Which is the exception?

Accepted Answer

A) It is equal to $\Delta$TR/$\Delta$inputs. 
B) It is equal to $\Delta$TP/price. 
C) It is the increase in total revenue that results from the use of one more unit of input. 
D) It is equal to MPL $\Delta$ price. 
A) It is equal to $\Delta$TR/$\Delta$inputs. 
B) It is equal to $\Delta$TP/price. 
C) It is the increase in total revenue that results from the use of one more unit of input. 
D) It is equal to MPL $\Delta$ price.

Question 20

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.
  
-Refer to the above information to answer this question.How much labour will Nearly Done Inc.employ if the market wage rate is $12?

Accepted Answer

A) 2. 
B) 4. 
C) 6. 
D) 8. 
E) Cannot be determined. 
A) 2. 
B) 4. 
C) 6. 
D) 8. 
E) Cannot be determined.

Through the use of a graph,illustrate the relationship between common property resources and deadweight loss

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -Suppose that the supply of labour is upward sloping and the marginal product of labour increases.Which of the following statements is correct?

The argument that technological change creates jobs assumes that:

-All of the following,expect one,are examples of how a trade union or professional association successfully restricts the supply of labour available.Which is the exception?

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 determines the productivity of labour?

Suppose that the current price of oil is $60 a barrel and the interest rate is 3%.If the National Petroleum company extracts and sells its oil at $60 a barrel today and the revenue is invested,what will be its value per barrel at the end of year 2?

All of the following statements,except one,are correct concerning the labour market for high-profile professional athletes.Which is the exception?

What is a common property resource?

Table 12.3,which is data for the firm Skipper the Shoe Maker. Table 12.3 -Use Table 12.3 to answer this question.What is the marginal revenue product of the 4^th hour of labour?

-Which of the following statements is correct regarding an individual firm which obtains its labour in a perfectly competitive labour market?

Refer to the graph above to answer this question.Which of the following statements is correct?

All of the following statements,except one,are correct when a trade union successfully imposes a wage rate above equilibrium.Which is the exception?

Refer to the graph above to answer this question.Which of the following statements is correct?

All of the following except one are true statements about the MRP.Which is the exception?

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -Refer to the above information to answer this question.How much labour will Nearly Done Inc.employ if the market wage rate is $12?

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

Through the use of a graph,illustrate the relationship between common property resources and deadweight loss

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -Suppose that the supply of labour is upward sloping and the marginal product of labour increases.Which of the following statements is correct?

The argument that technological change creates jobs assumes that:

-All of the following,expect one,are examples of how a trade union or professional association successfully restricts the supply of labour available.Which is the exception?

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 determines the productivity of labour?

Suppose that the current price of oil is $60 a barrel and the interest rate is 3%.If the National Petroleum company extracts and sells its oil at $60 a barrel today and the revenue is invested,what will be its value per barrel at the end of year 2?

All of the following statements,except one,are correct concerning the labour market for high-profile professional athletes.Which is the exception?

What is a common property resource?

Table 12.3,which is data for the firm Skipper the Shoe Maker. Table 12.3 -Use Table 12.3 to answer this question.What is the marginal revenue product of the 4th hour of labour?

-Which of the following statements is correct regarding an individual firm which obtains its labour in a perfectly competitive labour market?

Refer to the graph above to answer this question.Which of the following statements is correct?

All of the following statements,except one,are correct when a trade union successfully imposes a wage rate above equilibrium.Which is the exception?

Refer to the graph above to answer this question.Which of the following statements is correct?

All of the following except one are true statements about the MRP.Which is the exception?

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -Refer to the above information to answer this question.How much labour will Nearly Done Inc.employ if the market wage rate is $12?

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

Table 12.3,which is data for the firm Skipper the Shoe Maker. Table 12.3 -Use Table 12.3 to answer this question.What is the marginal revenue product of the 4^th hour of labour?