Question : 91) Refer to Figure 13-4. Consider the supply of oil : 1384279

91) Refer to Figure 13-4. Consider the supply of oil tankers to an individual Canadian shipping firm, the North American shipping industry, and the world shipping industry. Which diagram best shows the supply of oil tankers that is relevant to the North American shipping industry?

A) diagram 1

B) diagram 2

C) diagram 3

D) diagrams 2 or 3

E) diagrams 1 or 2

92) Refer to Figure 13-4. Consider the supply of oil tankers to an individual Canadian shipping firm, the North American shipping industry, and the world shipping industry. Which diagram best shows the supply of oil tankers that is relevant to an individual Canadian firm?

A) diagram 1

B) diagram 2

C) diagram 3

D) diagrams 2 or 3

E) diagrams 1 or 2

93) Refer to Figure 13-4. Consider the supply of oil tankers to an individual Canadian shipping firm, the North American shipping industry, and the world shipping industry. Which diagram best shows the supply of oil tankers that is relevant to the world shipping industry?

A) diagram 1

B) diagram 2

C) diagram 3

D) diagrams 2 or 3

E) diagrams 1 or 2

94) Refer to Figure 13-4. Consider oil tankers as a factor of production (for example, for the production of gasoline). Which diagram shows the most mobility of this factor of production?

A) diagram 1

B) diagram 2

C) diagram 3

D) none of the diagrams

E) each diagram shows mobility

95) Consider a manufacturing plant as an example of physical capital. Factor mobility with regard to this physical capital refers to

A) the ease with which this plant can be relocated to another location.

B) the ease with which this plant can be converted to a different use.

C) the ease with which the labour employed at the plant can be retrained to produce a different product.

D) the elasticity of supply of the labour employed in the plant.

E) only the long-run concept of mobility because it is physical capital.

96) Which of the following statements about equilibrium factor-price differentials is correct? They

A) tend to be self-eliminating.

B) may be caused by differences in the intrinsic qualities of factors.

C) will be eliminated when the allocation of resources is in long-run equilibrium.

D) are unrelated to differences in non-monetary benefits.

E) are unrelated to acquired differences in factors.

97) Non-monetary considerations tend to be most important in the allocation of

A) land.

B) capital.

C) labour.

D) raw materials.

E) natural resources.

98) Factors of production (land, labour, and capital) tend to move between uses so as to

A) equalize distribution of wealth.

B) equalize the amount of industry in separate regions of a nation.

C) maximize the net advantages to the owners of the factors.

D) increase the ratio of capital to labour.

E) maximize only the monetary advantages to the owners of the factors.

99) The difference between temporary factor-price differentials and equilibrium factor-price differentials is that

A) temporary differentials are affected by supply and demand whereas equilibrium differentials are not.

B) equilibrium differentials lead to, and are eliminated by, factor mobility whereas temporary differentials do not.

C) the government can only eliminate equilibrium differentials.

D) temporary differentials lead to, and are eliminated by, factor mobility whereas equilibrium differentials do not.

E) only equilibrium differentials are interesting for policy purposes.

100) According to the hypothesis of “equal net advantage,”

A) owners of factors will use their factors in a way that results in the largest financial return.

B) in equilibrium, owners of identical factors of production will receive different net returns for different uses of the factors.

C) owners of factors will use them in a way that results in the largest combined monetary and non-monetary rewards.

D) supply curves for a factor in any particular use are not likely to shift.

E) demand curves for a factor in any particular use are not likely to shift.