1. Which of the following goods is an example of a good that is nonexcludable bu
ID: 1167150 • Letter: 1
Question
1.
Which of the following goods is an example of a good that is nonexcludable but not nonrivalrous?
National defense.
A fishing lake.
A lighthouse.
A radio broadcast.
2.
When will the scale effect of a wage increase cause a fall in the amount of labor employed?
Always.
When labor is not a regressive factor.
When labor and capital are substitutes in production.
When labor and capital are complements in production.
3.
Increased use of machinery hurts workers by lowering the demand for their labor.
True
False
4.
If there is discrimination, employers engage in it at a cost.
True
False
National defense.
A fishing lake.
A lighthouse.
A radio broadcast.
2.
When will the scale effect of a wage increase cause a fall in the amount of labor employed?
Always.
When labor is not a regressive factor.
When labor and capital are substitutes in production.
When labor and capital are complements in production.
3.
Increased use of machinery hurts workers by lowering the demand for their labor.
True
False
4.
If there is discrimination, employers engage in it at a cost.
True
False
Explanation / Answer
Ans.
1) A fishing lake
Goods that are nonexcludable but not nonrival are called common pool resources.In these no one can be excluded from its use but reduces consumption of other people.Example of such goods is a fishing lake which reduces fish stock for others but no one is excluded from using the lake.Other examples are timber,coal etc. National defense and lighting house are public goods as they are non excludable and non rival whereas radio broadcast is club good that is nonrival but excludable.
2) when labour is not a regressive factor
The scale effect of a wage increase cause fall in amount of labour employed when labour is not a regressive factor.The scale effect with wage increase involves higher wages leading to higher average costs and marginal costs.Leading to reduction in quantity of product and all inputs used in production are reduced.Scale effect results in reduction in quantity of labour demanded with wage rate increase only when labour does not become inferior input or regressive factor.
3) True
With increase of machine there is replacement of humans.The work which was done before by human labour is done more by machines. Which takes away there jobs and lowers the demand for their labour.
4) True
There is a price to be paid for discrimination on a job.Main discrimination is of gender discrimination and racial discrimination.For such discriminations employers engage in it as a cost.
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