Question

6.   Shifting the labor supply curve to the left is a strategy of what type of union model?

A. Industrial union model   B. Craft union model   C. Demand-enhancement model   D. Monopsony union model

16.   What accounts for differences in rent?

A. The inelastic supply of land   B. The elastic supply of land   C. Public ownership of land   D. Differences in productivity of land

20.   To calculate the total cost of extracting a natural resource a firm must add extraction costs and

A. user cost.   B. labor cost.   C. resource cost.   D. capital cost.

Answer 1

6. Craft unions organize their members by trade. Many craft unions have successfully completed firms to hire only organized labor. So by restricting the supply of their own membership, they can increase the wages that they can earn. Therefore, the answer is option B. Craft union model.

16. Differences of rent arises due to the differences in the fertility of land. Therefore, the differences in the productivity of land account for differences in rent. The answer is option D.

20. To calculate the total cost of extracting a natural resource a firm must add extraction costs and the cost of  the natural resource that was removed from its natural setting during the period. Therefore the answer is option C.resource Cost.