The Demand for Alaskan Fishermen Is the Same as the Demand

question 130

Multiple Choice

The demand for Alaskan fishermen is the same as the demand for deep-sea divers in Hawaii. The annual earnings of Alaskan fishermen is 30% higher than the earnings of Hawaiian deep-sea divers. What is a possible explanation for this?

• A) Alaskan fishermen can work only part of the year, but deep-sea divers can work year round in Hawaii.
• B) The amount of human capital needed to be a deep-sea diver must be greater than the amount of human capital necessary to be a fisherman in Alaska.
• C) Alaskan fishermen must face discrimination that is not encountered by Hawaiian deep-sea divers.
• D) Being a fisherman in Alaska must be more dangerous than being a deep-sea diver in Hawaii.

Understand how interest rates impact resource extraction costs and user costs.

Analyze the effect of conflict on the pace of resource extraction.

Assess the impact of government regulations on user costs in resource extraction.

Explain how property rights influence the rate of resource extraction.

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Definitions:

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work carried out as needed.

Marginal Seller

A seller who is indifferent about selling at the current market price and might leave the market if prices decrease.

Cost

Cost is the amount of money required to purchase, produce, or maintain something, encompassing both direct expenses and indirect expenditures.

Transaction Costs

Expenses incurred in buying or selling a good or service, including search and information costs, bargaining costs, and enforcement costs of policies.