Why is the demand for labor a "derived demand?"
What will be an ideal response?
The demand for labor arises because we need to use labor to produce a good or service. The demand for a good, for example an apple, is a direct demand. However, the demand for an apple picker is a derived demand. It is derived from our need to use labor to produce the good we demand, the apple.
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It was once common for people to have servants who helped with the cooking and cleaning. Use the cost disease of the personal services dilemma to explain why these services have declined, even though one would expect an increased use in this age of the two-worker household.
What will be an ideal response?
Property values are determined by
a. the interest rate and expected annual revenues from the property, both present and future b. the value of the expected annual revenues from the property, both present and future, and the rate of inflation c. the opportunity cost of the property d. the present (this year only) revenue generated by the property e. the demand side only since the supply of the property is already fixed
Figure 2.1Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A. 200 tons of agricultural products per year B. 400 tons of agricultural products per year C. 500 tons of agricultural products per year D. 600 tons of agricultural products per year
When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.
A. price; increase B. price; decrease C. quantity; increase D. quantity; decrease