Two Friends Are Standing on Opposite Ends of a Canoe

question 77

Multiple Choice

Two friends are standing on opposite ends of a canoe that is initially at rest with respect to a frictionless lake.The person in the front throws a very massive ball toward the back,and the person in the back catches it.After the ball is caught,the canoe is

• A)moving backward.
• B)stationary.
• C)moving forward.

Understand how the supply of one factor of production can impact the earnings and productivity of other factors.

Comprehend the effects of market changes on the marginal productivity of land, labor, and capital.

Identify the circumstances under which wages and rent are determined in the labor and land markets.

Explain the role of diminishing returns in affecting the marginal productivity and rental prices of factors of production.