1. What is the significance of resource pricing? Explain how the factors determi
ID: 1091557 • Letter: 1
Question
1. What is the significance of resource pricing? Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curves slope downward?
2. The attached links provide information from the Bureau of Labor Statistics (BLS) websites related to the 10 fastest growing and 10 most rapidly declining U.S. occupations in the latest 10 year projection as forecasted by the BLS. News Release: http://www.bls.gov/news.release/ecopro.nr0.htm ; Table 6 : http://www.bls.gov/news.release/ecopro.t06.htm & Table 8 : http://www.bls.gov/news.release/ecopro.t08.htm . Analyze the factors that contribute to the expected rise or decline of these occupations. (Are they the result of technological, productivity or demographic shifts expected over this future period)?
3. Explain why the general level of wages is higher in the United States and other industrially advanced countries. What is the single most important factor underlying the long run increase in average real-wage rates in the United States?
4. What is meant by investment in human capital? Use this concept to explain (a) wage differentials, and (b) the long-run rise in real wage rates in the United States.
Explanation / Answer
What is the significance of resource pricing? Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curves slope downward?
Answer: All resources that enter into production are owned by someone, including the
most important resource of all for most people, self-owned labor. The most basic
significance of resource pricing is that it largely determines people
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