Special help with economics questions?

1. Derived demand means





1. a. the labor demand curve will be upward sloping.


2. b. labor demand is derived from demand for the product it produces.


3. c. labor demand will shift about in a random fashion.


4. d. labor demand is determined by the supply of labor.





2. When comparing market and public sector decision making, which statement is NOT true?





1. a. Self-interest is the motivating force in each decision making arena.


2. b. In both decision making sectors, majority rule is how things are done.


3. c. In both decision making sectors, there are scarcity constraints.


4. d. Collective (political) outcomes and economic outcomes may differ.





3. Which of the following is a characteristic of oligopoly?





1. a. Easy entry and exit


2. b. Many firms


3. c. Strategic dependence


4. d. None of these





4. The productivity standard for the distribution of income can be thought of as





1. a. rewarding people according to their ability to produce useful goods.


2. b. benefiting only the least productive worker.


3. c. proving that egalitarians are correct.


4. d. rewarding only the wealthy.





5. When poverty is defined by an absolute real income level, what will happen to the poverty rate if income per capita in a country continues to grow?





1. a. The poverty rate will increase forever.


2. b. The poverty rate will eventually be zero.


3. c. The poverty rate will increase and then decrease.


4. d. The poverty rate will never change.|||Following are the correct options as per my limited understanding, Kindly research a little more to verify it.



1. b. labor demand is derived from demand for the product it produces.

%26gt; This is so because Derived demand means "Industrial Demand" which is derived from the "Consumer Demand". Thus, demand for the labourers in case of Industrial demand will be dependent upon the demand of Consumers for that product as Industry produces as per Consumers' demand.



2. a. Self-interest is the motivating force in each decision making arena.

%26gt; This is so because Public sector Decision-making is aimed at Public welfare %26amp; is undertaken by the State(Government) which works for Public welfare %26amp; not for individual(self) interest.



3. c. Strategic dependence

%26gt; Oligopoly is characterized by a few large firms competing in the Market. These firms have to take into account the likely reaction of Competitors(which are large %26amp; very few) to any change in output levels %26amp; price as Consumers still have choices(though few) to make %26amp; shift to another Seller.



4. a. rewarding people according to their ability to produce useful goods

%26gt; Though I may attest Egalitarianism too but to be more pragmatic, any Distribution of Income that is according to one's ability to produce utility-based goods %26amp; services is a correct system of Income allocation. It is so because every individual has the right to get what he "deserves" by "productive addition" to the Economy rather than just his needs.



5. b. The poverty rate will eventually be zero.

%26gt; At least simple logic says so. Let me give you an example; Suppose the "Absolute Real Income level" is set at $10/day for a nation. Initially let us assume the Poverty is 25%. With time, Per capita Income keeps increasing, at some point of time, because Per capita income will keep increasing, those 25% Poor people with at last start earning at least $10/day %26amp; Poverty level will be zero.