Question 1

Which of the following would tend to raise the price of a natural resource?

Accepted Answer

A) If more of it was discovered. 
B) If its marginal revenue product decreased. 
C) If the interest rate decreased. 
D) Graphically,if the demand curve for it shifted to the left. 
A) If more of it was discovered. 
B) If its marginal revenue product decreased. 
C) If the interest rate decreased. 
D) Graphically,if the demand curve for it shifted to the left.

Question 2

Using a graph,contrast a firm operating in a perfectly competitive (pc)labour market and in a monopsony labour market.

Accepted Answer

See the following figure. @#IMG-DLM& Whe

Question 3

Explain why an increase in nominal wage does not necessarily imply an increase in real wage?

Accepted Answer

Real Wage = Nominal Wage ¸ Price Level
I

Question 4

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 was the size of Canada's labour force in 2013?

Accepted Answer

A) 7.5 million. 
B) 10.6 million. 
C) 12.2 million. 
D) 19.1 million. 
E) 21.5 million. 
A) 7.5 million. 
B) 10.6 million. 
C) 12.2 million. 
D) 19.1 million. 
E) 21.5 million.

Question 5

-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 equilibrium at c occurs?

Accepted Answer

A) The supply of labour,the demand for labour,the wage rate and the equilibrium quantity have all increased. 
B) The demand for labour and the wage rate have both increased while the supply of labour and the equilibrium quantity have both decreased. 
C) The demand for labour and the wage rate have both increased while the supply of labour has decreased and the equilibrium quantity has not changed. 
D) The wage rate has increased,while both the supply of and demand for labour have decreased and the equilibrium wage has remained unchanged. 
E) The wage rate and the equilibrium quantity have increased while both the demand for and the supply of labour has increased. 
A) The supply of labour,the demand for labour,the wage rate and the equilibrium quantity have all increased. 
B) The demand for labour and the wage rate have both increased while the supply of labour and the equilibrium quantity have both decreased. 
C) The demand for labour and the wage rate have both increased while the supply of labour has decreased and the equilibrium quantity has not changed. 
D) The wage rate has increased,while both the supply of and demand for labour have decreased and the equilibrium wage has remained unchanged. 
E) The wage rate and the equilibrium quantity have increased while both the demand for and the supply of labour has increased.

Question 6

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 slow,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) Below $60 a barrel 
A) Above $63.60 a barrel 
B) $63.60 a barrel 
C) Below $63.60 a barrel 
D) Below $60 a barrel

Question 7

List the three determinants of the demand for capital goods?

Accepted Answer

· Marginal revenue o

Question 8

Explain the concept of 'The Tragedy of the Commons'

Accepted Answer

· common property resources tend to be o

Question 9

Suppose a firm operates in a monopsony labour market structure.The marginal revenue product curve intersects the marginal cost of wage curve when QL = 5,and the demand for labour curve intersects the supply of labour curve when QL = 7.What will be the equilibrium quantity of labour traded?

Accepted Answer

The monopsonist hires at the l

Question 10

The table below shows the data for Willie the Pickle Maker.The marginal product figures are for cases of pickles per day.
  
 a)Fill in the MRP1 column assuming that the firm sells its product in a competitive market for $24 a case (situation A).Then,fill in the MRP2 column assuming that the price of a case of pickles increase to $27 (situation B)
b)If labour costs $220 a day,how much labour will Willie the Pickle Maker hire in each of the two situations?
c)What has happen to demand curve for labour in the two situations?

Accepted Answer

Recall that:
Marginal revenue product (M

Question 11

Factors K and L are used in the production of Good X.If the price of Good X increases,what happens to the factor prices (PK and PL)

Accepted Answer

An increase in the price of Go

Which of the following would tend to raise the price of a natural resource?

Using a graph,contrast a firm operating in a perfectly competitive (pc)labour market and in a monopsony labour market.

Explain why an increase in nominal wage does not necessarily imply an increase in real wage?

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 was the size of Canada's labour force in 2013?

-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 equilibrium at c occurs?

List the three determinants of the demand for capital goods?

Explain the concept of 'The Tragedy of the Commons'

Suppose a firm operates in a monopsony labour market structure.The marginal revenue product curve intersects the marginal cost of wage curve when QL = 5,and the demand for labour curve intersects the supply of labour curve when QL = 7.What will be the equilibrium quantity of labour traded?

Factors K and L are used in the production of Good X.If the price of Good X increases,what happens to the factor prices (PK and PL)

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

Which of the following would tend to raise the price of a natural resource?

Using a graph,contrast a firm operating in a perfectly competitive (pc)labour market and in a monopsony labour market.

Explain why an increase in nominal wage does not necessarily imply an increase in real wage?

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 was the size of Canada's labour force in 2013?

-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 equilibrium at c occurs?

List the three determinants of the demand for capital goods?

Explain the concept of 'The Tragedy of the Commons'

Suppose a firm operates in a monopsony labour market structure.The marginal revenue product curve intersects the marginal cost of wage curve when QL = 5,and the demand for labour curve intersects the supply of labour curve when QL = 7.What will be the equilibrium quantity of labour traded?

Factors K and L are used in the production of Good X.If the price of Good X increases,what happens to the factor prices (PK and PL)

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 equilibrium at c occurs?