Question 1

Figure 18-11 
-Refer to Figure 18-11. Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis. Then

Accepted Answer

A)  the marginal product of capital is 200.
B)  the value of the marginal product of capital is $200.
C)  a unit of capital can be purchased for $200.
D)  each worker in markets that produce capital goods earns a wage of $200.E) A) and B)
F) A) and C)

Question 2

A significant slowdown in the growth of productivity persisted in the U.S. economy between

Accepted Answer

A)  1960 and 1973.
B)  1973 and 1995.
C)  1973 and 2015.
D)  1995 and 2015.E) All of the above
F) C) and D)

Question 3

Table 18-1 
-Refer to Table 18-1. Suppose that the firm pays its workers $45 per day. Each unit of output sells for $10. How many days of labor should the firm hire?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) A) and C)
F) None of the above

Question 4

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages.

Accepted Answer

A) True 
 B)False

Question 6

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Accepted Answer

technologi...

Question 7

A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal product of labor.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would not shift a market labor supply curve to the left?

Accepted Answer

A)  an increase in the wage paid to workers in a competing market
B)  labor-saving technology
C)  a change in worker tastes so that workers want to retire earlier
D)  an increase in immigrationE) A) and D)
F) All of the above

Question 9

Scenario 18-2
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-2. When Gertrude participates in the labor market to hire crew members for her boats, she is most likely considered a

Accepted Answer

A)  demander of labor services.
B)  supplier of labor services.
C)  demander of capital.
D)  supplier of capital.E) B) and C)
F) None of the above

Question 10

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Accepted Answer

A)  technology flows.
B)  mechanization flows.
C)  part of the university's stock of capital.
D)  a flow of services from the university's stock of capital.E) A) and B)
F) A) and C)

Question 11

Factor markets are different from product markets in an important way because

Accepted Answer

A)  equilibrium is the exception, and not the rule, in factor markets.
B)  the demand for a factor of production is a derived demand.
C)  the demand for a factor of production is likely to be upward sloping, in violation of the law of demand.
D)  All of the above are correct.E) None of the above
F) B) and C)

Question 12

Which of the following statements is correct?

Accepted Answer

A)  Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages.
B)  Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link.
C)  Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link.
D)  Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.E) None of the above
F) B) and C)

Question 13

When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to

Accepted Answer

A)  minimize wages.
B)  minimize variable costs.
C)  maximize the number of workers hired.
D)  maximize profit.E) A) and B)
F) A) and C)

Question 14

Which of the following is not correct?

Accepted Answer

A)  In a labor market, the wage adjusts to balance the supply and demand for labor.
B)  A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor.
C)  Any event that changes the supply or demand for labor must change the equilibrium wage.
D)  Any event that changes the supply or demand for labor must change the value of the marginal product.E) B) and D)
F) B) and C)

Question 15

If the output price of a product rises, the demand for capital will increase, raising the rental price of capital.

Accepted Answer

A) True 
 B)False

Question 16

Consider the labor market for short-order cooks. An increase in immigration will cause

Accepted Answer

A)  both equilibrium wages and equilibrium employment to increase.
B)  both equilibrium wages and equilibrium employment to decrease.
C)  equilibrium wages to increase and equilibrium employment to decrease.
D)  equilibrium wages to decrease and equilibrium employment to increase.E) B) and C)
F) None of the above

Question 17

The production function is

Accepted Answer

A)  the increase in the amount of output from an additional unit of labor.
B)  influenced by the productivity of workers.
C)  the marginal revenue produce minus the wage rate paid to workers.
D)  All of the above are correct.E) B) and C)
F) A) and C)

Question 18

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding increase in wages.

Accepted Answer

A) True 
 B)False

Question 19

An increase in the supply of labor

Accepted Answer

A)  increases the equilibrium wage and increases the value of the marginal product of labor.
B)  increases the equilibrium wage and decreases the value of the marginal product of labor.
C)  decreases the equilibrium wage and increases the value of the marginal product of labor.
D)  decreases the equilibrium wage and decreases the value of the marginal product of labor.E) B) and C)
F) A) and D)

Question 20

Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. 
-Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7.50. How many workers should the firm hire?

Accepted Answer

A)  2
B)  3
C)  4
D)  5E) None of the above
F) A) and D)

Exam 18: The Markets for the Factors of Production

A significant slowdown in the growth of productivity persisted in the U.S. economy between

Correct Answer
verified

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Correct Answer
verified
technologi...
View Answer

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages.

Correct Answer
verified

Which of the following would not shift a market labor supply curve to the left?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Table 18-1 -Refer to Table 18-1. Suppose that the firm pays its workers $45 per day. Each unit of output sells for $10. How many days of labor should the firm hire?

Correct Answer
verified

Correct Answer
verified

A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal product of labor.

Correct Answer
verified

When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Consider the labor market for short-order cooks. An increase in immigration will cause

Correct Answer
verified

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Correct Answer
verified

Factor markets are different from product markets in an important way because

Correct Answer
verified

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Correct Answer
verified

An increase in the supply of labor

Correct Answer
verified

The production function is

Correct Answer
verified

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding increase in wages.

Correct Answer
verified

Table 18-12 The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. -Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7.50. How many workers should the firm hire?

Correct Answer
verified

If the output price of a product rises, the demand for capital will increase, raising the rental price of capital.

Correct Answer
verified

Figure 18-11 -Refer to Figure 18-11. Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis. Then

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

A significant slowdown in the growth of productivity persisted in the U.S. economy between

Correct AnswerverifiedShow Answer

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Correct Answerverifiedtechnologi...View AnswerShow Answer

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages.

Correct AnswerverifiedShow Answer

Which of the following would not shift a market labor supply curve to the left?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Table 18-1 -Refer to Table 18-1. Suppose that the firm pays its workers $45 per day. Each unit of output sells for $10. How many days of labor should the firm hire?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal product of labor.

Correct AnswerverifiedShow Answer

When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Consider the labor market for short-order cooks. An increase in immigration will cause

Correct AnswerverifiedShow Answer

If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as

Correct AnswerverifiedShow Answer

Factor markets are different from product markets in an important way because

Correct AnswerverifiedShow Answer

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Correct AnswerverifiedShow Answer

An increase in the supply of labor

Correct AnswerverifiedShow Answer

The production function is

Correct AnswerverifiedShow Answer

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding increase in wages.

Correct AnswerverifiedShow Answer

Table 18-12 The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. -Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7.50. How many workers should the firm hire?

Correct AnswerverifiedShow Answer

If the output price of a product rises, the demand for capital will increase, raising the rental price of capital.

Correct AnswerverifiedShow Answer

Figure 18-11 -Refer to Figure 18-11. Suppose the intersection of the supply and demand curves matches with a value of $200 on the vertical axis. Then

Correct AnswerverifiedShow Answer

Correct Answer
verified

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verified
technologi...
View Answer

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