Question 16 (1 point) A technological breakthrough in using photons for computer

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Question 16 (1 point) A technological breakthrough in using photons for computers will increase the productivity of those working with computers a hundredfold. You would expect this breakthrough to shift the marginal product of labour curve up and to the right, raising the quantity of labour demanded at any given real wage. marginal product of labour curve down and to the left, reducing the quantity of labour demanded at any given real wage. labour supply curve up, reducing the quantity of labour demanded at any given real wage. labour supply curve down, raising the quantity of labour demanded at any given real wage. Save Question 17 (1 point) Beautiful Boating purchases five new boats at $200 thousand each to rent to vacationing fishermen. The irm The net increase in GDP of these transactions was ells its old boats to the public for $500 thousand onse esponse $500,000 $1.000,0o00 Started

Explanation / Answer

1) (a) The rise in productivity will imply that labor can produce more and it will shift the the marginal product of labor curve to the up and right, raising the quantity of labor demanded at any real wage rate.

2) (b) The selling of old boats does not form a part of current year GDP only new boats production will form the part of current GDP. So net increase in GDP=200000*5=$1000000

3) (c) Governemt services are values at their cost of production (i.e the level of government expenditure on services) and it forms a part of the GDP.

4) (c) If a Canadian company builts a road in Dubai, then it receives factor income from Kuwait for its services.

Thus this activity will be inculeded in Canadian GNP only for that protion which was attributable to Canadian capital and labor.

5) (b) When floods ravage cities, then it leads to destruction of factories and firms and it wills also lead to fall in labor productivity as capital is destroyed.

So marginal product of labor curve will shift downwards and quantity of labor demanded at any wage rate will fall.

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