Quelpr

The Demand for and Supply of Factors · CAPE Economics Unit 1

70 past-paper questions on The Demand for and Supply of Factors, part of Distribution Theory, from every CAPE Economics Unit 1 paper on Quelpr.

Practise The Demand for and Supply of Factors
  1. 12(a)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Identify which of the goods purchased by the farmer have demands classified as 'derived demands'.
  2. 12(b)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain why the demand for the goods identified in (a) is considered derived demand.
  3. 12(c)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Provide TWO other examples of goods whose demand is considered derived demand.
  4. 14(a)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Determine the equilibrium wage and the equilibrium number of workers employed from the diagram.
  5. 11(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1John told Jane that the price of sugar is an important factor influencing the price of land on which sugar cane is planted. Explain why this may be so.
  6. 11(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1List TWO factors of production and explain how the reward of any ONE of them relates to the cost of production.
  7. 12(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'value of the marginal product of labour' (marginal revenue product of labour).
  8. 12(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain why a perfectly competitive firm will pay a wage equal to the value of the marginal product of labour.
  9. 12(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the terms 'transfer earnings' and 'rent'.
  10. 13(a)(i)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'labour supply'.
  11. 13(a)(ii)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'labour force participation rate'.
  12. 13(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Identify TWO from the list who are NOT included in the labour force.
  13. 5(b)(i)12 marks· CAPE Economics Unit 1 · 2006 · Paper 2Complete the table in your answer booklet.
  14. 5(b)(ii)4 marks· CAPE Economics Unit 1 · 2006 · Paper 2State the number of units of labour that AURO INC employs.
  15. 5(c)(i)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2Draw a backward-bending supply curve of labour and identify the region where the income effect exceeds the substitution effect.
  16. 5(c)(ii)4 marks· CAPE Economics Unit 1 · 2006 · Paper 2Explain why part of the curve has a negative slope.
  17. 6(a)3 marks· CAPE Economics Unit 1 · 2007 · Paper 2Define the term 'value of the marginal product of labour'.
  18. 6(b)12 marks· CAPE Economics Unit 1 · 2007 · Paper 2Explain the difference between the labour force and the potential labour force.
  19. 6(d)(i)9 marks· CAPE Economics Unit 1 · 2007 · Paper 2State the earnings received by each of the four economic factors of production.
  20. 6(d)(ii)4 marks· CAPE Economics Unit 1 · 2007 · Paper 2Name the economic reward accruing to each factor of production.
  21. 6(d)(iii)4 marks· CAPE Economics Unit 1 · 2007 · Paper 2Indicate the percentage of total revenue earned by each factor of production.
  22. 6(e)(i)6 marks· CAPE Economics Unit 1 · 2007 · Paper 2Distinguish between transfer earnings and economic rent.
  23. 6(e)(ii)4 marks· CAPE Economics Unit 1 · 2007 · Paper 2Calculate the economic rent John earns if his minimum acceptable return for his personal inputs is 15% of revenues.
  24. 5(a)14 marks· CAPE Economics Unit 1 · 2008 · Paper 2Using a labour demand and a labour supply diagram explain how the share of income going to labour is determined.
  25. 5(b)10 marks· CAPE Economics Unit 1 · 2008 · Paper 2Discuss the division of the reward of labour into transfer earnings and rent.
  26. 5(c)(i)5 marks· CAPE Economics Unit 1 · 2008 · Paper 2Explain what is meant by the term 'derived demand'.
  27. 5(c)(ii)5 marks· CAPE Economics Unit 1 · 2008 · Paper 2Explain why the price of land in the busy commercial district of a major city is likely to be higher than the price of land in other areas.
  28. 5(a)(i)a)2 marks· CAPE Economics Unit 1 · 2009 · Paper 2State the formula for computing the Marginal Physical Product of Labour (MPP).
  29. 5(a)(i)b)2 marks· CAPE Economics Unit 1 · 2009 · Paper 2State the formula for computing the Average Physical Product of Labour (APP).
  30. 5(a)(i)c)2 marks· CAPE Economics Unit 1 · 2009 · Paper 2State the formula for computing the Value of Marginal Product (VMP).
  31. 5(a)(ii)18 marks· CAPE Economics Unit 1 · 2009 · Paper 2On the answer sheet provided, complete the table assuming that the price of the product is 100 per unit and the wage rate is 200.
  32. 5(b)(i)15 marks· CAPE Economics Unit 1 · 2009 · Paper 2Plot the labour demand curve and the wage rate on the same diagram.
  33. 5(b)(ii)7 marks· CAPE Economics Unit 1 · 2009 · Paper 2Determine the number of units of labour that the firm will employ and explain why.
  34. 5(a)(ii)4 marks· CAPE Economics Unit 1 · 2010 · Paper 2Calculate for EACH unit of labour the value of the marginal product if the price of the product is $1.50.
  35. 5(b)(i)12 marks· CAPE Economics Unit 1 · 2010 · Paper 2Assuming that the wage rate is $15.00, draw a diagram showing the value of the marginal product curve and the wage rate.
  36. 5(b)(ii)5 marks· CAPE Economics Unit 1 · 2010 · Paper 2Assuming the wage rate is $15.00, state how much labour will be employed and explain why.
  37. 6(a)19 marks· CAPE Economics Unit 1 · 2010 · Paper 2With the aid of a competitive labour market diagram, discuss how wage rate and employment level are determined in a labour market, including demand and supply curves, equilibrium, disequilibrium, and shifts of the…
  38. 5(a)4 marks· CAPE Economics Unit 1 · 2011 · Paper 2Identify the rewards accruing to the owners of each factor of production: land, labour, capital, and enterprise.
  39. 5(b)(i)6 marks· CAPE Economics Unit 1 · 2011 · Paper 2Define wage rate and marginal product, and explain the importance of each to a firm.
  40. 5(b)(ii)10 marks· CAPE Economics Unit 1 · 2011 · Paper 2With the aid of a diagram, explain how the wage rate and the value of marginal product of labour determine the quantity of labour hired by a firm.
  41. 5(c)5 marks· CAPE Economics Unit 1 · 2011 · Paper 2Explain the relationship between the value of the marginal product of labour and the firm's labour demand curve.
  42. 5(a)(i)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Identify TWO factors of production and their respective rewards.
  43. 5(a)(ii)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Explain why the demand for a factor of production is considered a derived demand.
  44. 5(b)(i)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Outline the 'marginal productivity theory'.
  45. 5(b)(ii)3 marks· CAPE Economics Unit 1 · 2012 · Paper 2Explain how the marginal productivity theory relates to the demand for labour.
  46. 5(c)(i)6 marks· CAPE Economics Unit 1 · 2012 · Paper 2With the aid of a diagram, distinguish between 'transfer earnings' and 'economic rent'.
  47. 5(c)(ii)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Assuming that the factor supply curve is vertical, state the values of economic rent and transfer earnings.
  48. 5(e)4 marks· CAPE Economics Unit 1 · 2012 · Paper 2A computer has a two-year lifespan and yields a marginal revenue product (MRP) of…
  49. 5(a)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Outline the marginal productivity theory of factor demand.
  50. 5(b)(i)b)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Calculate the marginal revenue product for EACH additional worker.
  51. 5(b)(ii)1 mark· CAPE Economics Unit 1 · 2013 · Paper 2Determine the quantity of labour that will be employed per day.
  52. 5(b)(iii)5 marks· CAPE Economics Unit 1 · 2013 · Paper 2Explain why more (or less) labour is NOT employed.
  53. 5(d)4 marks· CAPE Economics Unit 1 · 2013 · Paper 2Draw a demand and supply diagram of the labour market showing the decomposition of earnings into transfer earnings and economic rent.
  54. 5(a)(i)2 marks· CAPE Economics Unit 1 · 2014 · Paper 2Explain what is meant by the statement 'The demand for all productive resources is a derived demand.'
  55. 5(a)(ii) a)4 marks· CAPE Economics Unit 1 · 2014 · Paper 2Outline TWO factors that influence the demand for labour.
  56. 5(a)(ii) b)4 marks· CAPE Economics Unit 1 · 2014 · Paper 2Outline TWO factors that influence the supply of labour.
  57. 5(b)(i)2 marks· CAPE Economics Unit 1 · 2014 · Paper 2State the 'least-cost rule'.
  58. 5(b)(ii)3 marks· CAPE Economics Unit 1 · 2014 · Paper 2Use the least-cost rule to calculate the hourly rental price of a machine.
  59. 5(b)(iii)6 marks· CAPE Economics Unit 1 · 2014 · Paper 2Assuming the popularity of Blue Corp's semiconductor chips falls, explain with the aid of a well-labelled diagram the effect of this decrease on the marginal revenue product curve for machine hours.
  60. 5(c)4 marks· CAPE Economics Unit 1 · 2014 · Paper 2Outline TWO factors that can account for workers in certain countries being more productive than workers in other countries.
  61. 5(a)(i)5 marks· CAPE Economics Unit 1 · 2016 · Paper 2Draw a labour market diagram, and show on your diagram how a surge of migrants into the country will affect the equilibrium wage and level of employment.
  62. 5(a)(ii)5 marks· CAPE Economics Unit 1 · 2016 · Paper 2Draw a labour market diagram, and show on your diagram how an increase in world demand for tourism will affect the equilibrium wage and level of employment.
  63. 5(b)(i)6 marks· CAPE Economics Unit 1 · 2016 · Paper 2Copy and complete the table to show the marginal product and the value of the marginal product.
  64. 5(b)(ii)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Sketch the firm's labour demand curve.
  65. 5(c)(ii)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Justify the manager's employment of FIVE workers per day in the manufacture of belts.
  66. 3(a)(i)2 marks· CAPE Economics Unit 1 · 2017 · Paper 2Define the term 'marginal revenue product of labour'.
  67. 3(b)5 marks· CAPE Economics Unit 1 · 2017 · Paper 2Prove that the labour market profit maximizing condition is MRP_L = MC_L.
  68. 3(c)4 marks· CAPE Economics Unit 1 · 2017 · Paper 2Draw a diagram illustrating how the wage rate is determined in a perfectly competitive market.
  69. 3(a)(i)4 marks· CAPE Economics Unit 1 · 2018 · Paper 2Distinguish between 'transfer earnings' and 'economic rent'.
  70. 3(a)(ii)2 marks· CAPE Economics Unit 1 · 2021 · Paper 2Define the term 'marginal revenue product'.

Related topics in Distribution Theory