Question : 81) Refer to Table 13-1. How many units of this : 1384278

81) Refer to Table 13-1. How many units of this factor of production would the profit-maximizing firm hire if the price of each unit of the factor was $140?

A) 11

B) 12

C) 13

D) 14

E) It is not possible to determine with the data given.

82) Refer to Table 13-1. How many units of this factor of production would the profit-maximizing firm hire if the price of each unit of the factor was $30?

A) 12

B) 13

C) 14

D) 15

E) It is not possible to determine with the data given.

83) Consider the perfectly competitive labour market for video-game designers.  Which of the following will shift the demand curve for these workers to the right?

1) an increase in the equilibrium wage rate for video-game designers;

2) a decrease in the market price of video games;

3) new software that speeds the design process.

A) 1 only

B) 2 only

C) 3 only

D) 1 and 2

E) 2 and 3

84) Assume that the market for farmland in the fruit-growing region of southwestern Ontario is perfectly competitive.  Which of the following will shift the demand curve for this land to the left?

1) a decrease in demand for Canadian-grown fruit;

2) an increase in the price of fruit;

3) scientific reports that confirm a reduction in water supply to the region.

A) 1 and 2

B) 2 and 3

C) 1 and 3

D) 1 only

E) 3 only

85) If a given factor of production is highly mobile across alternative uses, the factor’s supply is

A) highly price elastic.

B) highly price inelastic.

C) perfectly inelastic.

D) irrelevant to its earnings.

E) immobile at the industry level.

86) The aggregate quantity of labour supplied will generally rise when there is an increase in

1) immigration;

2) labour-force participation rates;

3) the retirement age.

A) 1 and 2

B) 1 and 3

C) 2 and 3

D) 1, 2, and 3

E) 1 only

87) The elasticity of supply of computer-game programmers will generally be greater if we are analyzing the amount supplied to

A) the whole economy in the short run.

B) the whole economy in the long run.

C) a particular industry in the short run.

D) a particular industry in the long run.

E) a specific firm.

88) Consider computer programmers as a factor of production. Their factor mobility is quite ________, and so to any specific firm the supply of this factor is quite ________.

A) low; inelastic

B) low; elastic

C) high; inelastic

D) high; elastic

89) If small changes in incentives can induce a factor to shift between alternative uses, we say that the factor is

A) efficient.

B) mobile.

C) inelastic.

D) declining.

E) flighty.

90) Which of the following statements concerning factor mobility is FALSE?

A) Land is a mobile resource in an economic sense, because it has many alternative uses.

B) Once it is in place, a factory designed and built for a specific purpose is highly mobile.

C) The allocation of labour tends to depend more on non-monetary considerations than does the allocation of either land or capital.

D) The elasticity of the supply of labour to any particular use is likely to be greater in the long run than in the short run.

E) Factor mobility is an important determinant of economic rent.