ECS1501 ASSIGNMENT 12 SEMESTER 2 OF 2022
The ________ effect of a wage increase states that a higher wage rate increases workers'
real income, and thus increases their demand for all normal goods, including leisure,
which decreases the quantity of labour supplied.
non-market work
substitution
leisure
income
Total cost divided by the quantity of output produced is
average fixed cost.
marginal cost.
average total cost.
average product.
Taki hopes to become a dentist one day. In the meantime, like many of his friends, he is
selling sweets at the local taxi rank. The following diagram shows his cost and revenue
curves.
Taki's economic profit, in the short run, is
Answer:
1
, Which one of the following statements about the goods and the labour market is
correct?
Firms create the demand in the goods market.
Households create the supply in the labour market.
Firms create the supply in the labour market.
Households create the supply in the goods market.
This question is based on the following diagram.
To the left of point C (e.g., at Q1)
the firm is maximizing profits.
economic profit is the vertical distance between curves B and MC.
the firm should produce less.
the firm is not maximising profits.
The ________ effect of a wage increase states that a higher wage rate increases workers'
real income, and thus increases their demand for all normal goods, including leisure,
which decreases the quantity of labour supplied.
non-market work
substitution
leisure
income
Total cost divided by the quantity of output produced is
average fixed cost.
marginal cost.
average total cost.
average product.
Taki hopes to become a dentist one day. In the meantime, like many of his friends, he is
selling sweets at the local taxi rank. The following diagram shows his cost and revenue
curves.
Taki's economic profit, in the short run, is
Answer:
1
, Which one of the following statements about the goods and the labour market is
correct?
Firms create the demand in the goods market.
Households create the supply in the labour market.
Firms create the supply in the labour market.
Households create the supply in the goods market.
This question is based on the following diagram.
To the left of point C (e.g., at Q1)
the firm is maximizing profits.
economic profit is the vertical distance between curves B and MC.
the firm should produce less.
the firm is not maximising profits.
