What factors might increase the demand for carpenters in a medium-sized town? Be specific
What will be an ideal response?
One factor would be an increase in the population, which would increase the demand for carpenters’ services, assuming the new residents also required the use of carpenters from time to time. A second factor could be an increase in the demand for the products that require carpenters’ skills, e.g., an increase in new home construction or remodeling of existing homes. A possible third factor might be an increase in productivity on the part of carpenters in general, so that consumers decided to purchase more custom-made furniture, etc., in place of prefabricated goods. A fourth possible factor could be an increase in the price of substitute prefabricated goods, so that the demand for carpenters’ repair and construction work increased. Finally, a possible cause could be an increase in advertising or marketing of carpenters’ services either by individual carpenters or by a carpenters’ union.
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According to the theory of purchasing power parity, the exchange rate between two countries reflects
A) the interest rates in the two countries. B) the unemployment rates in the two countries. C) government spending in the two countries. D) differences in the overall price levels in the two countries.
When a nation imports a good, its ________ surplus increases and its ________ surplus increases
A) consumer; producer B) consumer; consumer C) producer; producer D) producer; total E) total; consumer
The demand for labor depends on I. technology. II. the prices of other factors of production. III. the price of the product
A) I and II B) II and III C) I and III D) I, II and III
Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?
A) Greenland B) They have the same advantage. C) Iceland D) cannot be determined Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.