Answered: Wages and salaries comprise the price…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 8PA

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Question

7. Wages and salaries comprise the price of labour. What happens to the market for
labour when immigration increases?
(A) Demand rises; wages go up.
(B) Demand declines; wages go down.
(C) Supply rises; wages go down.
(D) Supply declines; wages go up

8. Under a Malthusian paradigm, why do wars, pandemics, and famines cause a temporary increase in per-capita wealth?

(A) The corporations associated with weapons, pharmaceuticals, and agriculture profit, thus increasing economic growth.
(B) The available resources are shared between fewer individuals, since many have died.
(C) The available resources increase in price, since demand rises.
(D) Per-capita wealth never rises under a Malthusian paradigm.

13. According to Statistics Canada (base year=2002), the CPI in Canada for 1914 is 6. In 2020, the CPI is 137. Suppose that in 1914, $20.67 could purchase a custom tailored suit. How much is this in 2020 dollars?
(A) $9.05.
(B) $471.97.
(C) $0.91.
(D) $4,719.65.

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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