Question :
101) The theory of equal net advantage a theory concerning
A) : 1384280
101) The theory of equal net advantage is a theory concerning
A) the demand for factors.
B) the supply of factors.
C) the marginal product of the factors.
D) the production process.
E) economic versus accounting profit.
102) A temporary factor-price differential is one which
A) will tend to be eliminated in the long run.
B) will hamper the reallocation of resources from declining to growing industries.
C) derives from intrinsic differences in the factors themselves.
D) will reflect a permanent state of disequilibrium.
E) is seldom self-eliminating.
103) The hypothesis of equal net advantage explains why
A) two workers doing the same job in the same office are sometimes paid different wage rates.
B) higher wages must be paid to entice workers to accept less desirable occupations or a less desirable location.
C) the supply of unskilled labour in Canada is as great as it is.
D) a hard-working employee may get paid less than other employees.
E) lower wages are paid to workers with less qualifications.
104) When the wage paid to workers in job A increases relative to the wage in job B, then, ceteris paribus,the
A) net advantage of job B will increase relative to job A.
B) non-monetary advantages of job A will increase.
C) non-monetary advantages of job B will decrease.
D) net advantage of job A will increase relative to job B.
E) monetary advantage of job A will increase, but not its net advantage.
105) If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour, then
A) some workers will begin to accept lower wages and induce employers to hire more workers.
B) there will be a shortage of labour, thereby increasing the equilibrium wage rate.
C) the demand curve for labour will shift to the right.
D) the supply curve for labour will shift to the right.
E) a black market for labour will form, with firms offering workers very high wages.
106) Other things equal, if a particular province has some non-monetary advantages, such as a temperate climate, the wage rate in that province will be
A) higher than average and the market will be in equilibrium.
B) higher than average and the market will be in disequilibrium.
C) lower than average and the market will be in equilibrium.
D) lower than average and the market will be in disequilibrium.
E) the same as any other province.
107) Suppose the following conditions existed in the Canadian labour market:
1) All labour is mobile and possesses the same skills.
2) Non-monetary advantages are the same across industries and occupations.
3) The demand conditions for labour are the same across industries.
A) be the same in all industries.
B) be higher in some industries than in others.
C) be the same in most industries.
D) differ because of the desirability of the location of the job.
E) have equilibrium differentials.
108) Suppose that experienced oil-field workers are observed to earn a higher wage in Alberta than in Newfoundland. Economists would likely call this
A) an equilibrium differential.
B) an intrinsic difference.
C) an acquired difference.
D) equalization of net advantage.
E) a temporary factor-price differential.
109) Suppose a cook at a diamond mining camp in Canada’s North earns a much higher wage than a cook with similar training and experience at an office building in Halifax. Economists would likely call this
A) a temporary factor-price differential.
B) a compensating differential.
C) an intrinsic difference.
D) an acquired difference.
E) an equilibrium differential.
110) Suppose the government decides, in the interest of “fairness,” to impose a policy prohibiting factor-price differentials. The likely result would be
A) a horizontal factor supply curve.
B) a decrease in net factor demands.
C) an increase in factor mobility.
D) a shortage of factors in uses with low net advantage.
E) equilibrium in factor markets.
