discuss the following question

(a) Define each of the following: (i) Supply price of a factor of production. (ii) Transfer earnings. (iii) Economic Rent. (20 marks) (b) A principal factor influencing the demand for labour by an individual firm is the Marginal Revenue Productivity of Labour (MRP). (i) Explain what is meant by the underlined term. (ii) Discuss the factors, other than MRP, which influence the demand for labour by an individual firm. (30 marks) (c) The diagram below represents the supply curve of labour to a particular firm. Supply Curve Wage rate Supply of Labour Explain the effect which each of the following developments may have on this supply curve. Illustrate each answer by means of a diagram. (i) The workers shift their preference towards increased leisure time. (ii) The workers' trade union negotiates a minimum wage. (25 marks) [75 marks] Page 5 of 7 5. (a) Discuss the ways in which money can contribute to the smooth working of an economy. (20 marks) (b) Explain the likely economic effects if: the supply of money grows at a faster rate than a country's production of goods and services (ii) the supply of money grows at a slower rate than a country's production of goods and services. (20 marks) (c) (i) Explain what is meant by the term price inflation. (ii) Name the main index used to measure price inflation in the Irish economy. (ii) Outline the economic consequences of a rise in the rate of price inflation in Ireland. (35 marks) [75 marks]1. Define regressive tax and state TWO examples of this type of tax. Definition: Example 1: Example 2: (16 marks) 2. State FOUR economic aims of government. (i) (1) (iii) (iv) (16 marks) 3. Define Monetary Policy. State TWO measures by which the European Central Bank implements monetary policy within the euro-zone countries. Definition: Measure 1: Measure 2: (16 marks)