Exam 17: Markets for Factors of Production

Use the information below to answer the following questions. Fact 17.4.1 Water is a natural resource that is plentiful in Canada but not plentiful in Arizona and southern California.Suppose Canadians start to export bulk water to Arizona and southern California. -Refer to Fact 17.4.1.The price of bulk water in Arizona and southern California will ________.Water is a ________ natural resource.

Use the figure below to answer the following questions. Figure 17.3.2 -Refer to Figure 17.3.2.Suppose this labour market is initially in a monopsony situation and then the government introduces a minimum wage of $16 per hour.Choose the correct statement.

If the wage rate increases,the substitution effect gives a household the incentive to

Suppose a gift shop in Corner Brook,Newfoundland,hires workers to personalize ornaments for Christmas.The store sells the personalized ornaments for $6 each.The value of marginal product of this store's fourth worker is $60.The marginal product of the fourth worker is

A firm's demand curve for labour shifts when there is a change in the

If the present value of the $1,000 to be received in one year is $800,the interest rate is

The demand for labour is a derived demand because it is derived from

Table 17.3.1 -Table 17.3.1 gives information about the labour market in Lantis,a community in which the labour market is perfectly competitive.If the price of the good that Lantis produces increases and the value of marginal product of labour changes by $10 an hour,the equilibrium wage rate is ________ an hour and the quantity of labour employed is ________.

A labour union is

What is the most an investor would be willing to pay for a stock that will pay $210 next year and nothing before or after?

If the supply of labour decreases,which of the following events will occur?

Unions try to raise the demand for their labour by

A decrease in the price of factors of production that are substitutes for labour shifts the labour

If the present value of $500 to be received in one year is $463,the interest rate is

If the wage rate increases,the income effect gives a household the incentive to

The labour supply curve may eventually become "backward bending" at high wages because

Use the figure below to answer the following questions. Figure 17.3.1 -Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is competitive,the wage rate is

If the value of marginal product of capital decreases as more capital is employed,then the

The Brown's Egg store in Lethbridge,Alberta hires workers to paint eggs.The price of an egg is $2.50.The value of marginal product of this store's fifth worker is $25.The marginal product of the fifth worker is

To increase the demand for union labour,unions do all of the following except