Question 1

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 2

Labor-saving technological advances decrease the marginal productivity of labor.

Accepted Answer

A) True 
 B)False

Question 3

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) C) and D)
F) A) and D)

Question 4

Table 18-9
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. 
-Refer to Table 18-9. What is the marginal product of the fifth unit of labor?

Accepted Answer

A)  30 units
B)  40 units
C)  50 units
D)  250 unitsE) All of the above
F) None of the above

Question 5

For a worker, the opportunity cost of an hour of leisure

Accepted Answer

A)  rises by $8 when his wage rises by $8 per hour.
B)  falls by $8 when his wage rises by $8 per hour.
C)  is the same for a celebrity talk-show host as it is for a teacher.
D)  is determined by factors that are unrelated to his hourly wage.E) A) and B)
F) A) and C)

Question 6

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. 
-Refer to Table 18-11. What is the value of the marginal product of the fifth worker?

Accepted Answer

A)  $120
B)  $240
C)  $300
D)  $1,600E) All of the above
F) A) and C)

Question 7

Immigration is an important

Accepted Answer

A)  explanation for the failure of firms to operate on their labor-demand curves.
B)  explanation for the failure of firms to operate on their output-supply curves.
C)  source of shifts in labor demand.
D)  source of shifts in labor supply.E) All of the above
F) A) and D)

Question 8

A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.

Accepted Answer

The wage (opportunity cost of ...

Question 9

Table 18-3 
-Refer to Table 18-3. For Firm C, the marginal product of labor is

Accepted Answer

A)  increasing.
B)  constant.
C)  decreasing.
D)  negative.E) B) and C)
F) None of the above

Question 10

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Accepted Answer

A)  The labor supply will stay unchanged until the wages paid to pear pickers change.
B)  The labor supply will decrease.
C)  The labor supply will increase.
D)  The labor supply may fall or rise, depending on the price of pears.E) A) and C)
F) C) and D)

Question 11

An upward-sloping labor supply curve means that

Accepted Answer

A)  workers prefer to buy more leisure time when their incomes increase.
B)  workers prefer to supply less labor when wages are high.
C)  an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 12

From 1960 to 2015, inflation-adjusted wages increased by 165 percent in the U.S., and yet firms more than doubled the amount of labor they employed.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following events would shift the labor supply curve?

Accepted Answer

A)  changes in the number of women willing to work
B)  immigration of workers
C)  changing attitudes towards work
D)  All of the above are correct.E) A) and D)
F) All of the above

Question 14

Figure 18-10 1 to D2? A) a change in workers' attitudes toward the work-leisure tradeoff B) decreases in wages in other labor markets C) an increase in the price of firms' output D) All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-10. Which of the following would shift of the labor demand curve from D1 to D2?

Accepted Answer

A)  a change in workers' attitudes toward the work-leisure tradeoff
B)  decreases in wages in other labor markets
C)  an increase in the price of firms' output
D)  All of the above are correct.E) B) and D)
F) B) and C)

Question 15

Fiona's hourly wage increases from $8 to $10. Which of the following describes a consequence of the increase in Fiona's wage?

Accepted Answer

A)  The opportunity cost of Fiona's leisure time has decreased.
B)  Fiona may choose to work fewer hours due to the increase in her wage.
C)  If Fiona's labor supply curve is upward sloping, she will choose to work fewer hours.
D)  Both a and b are correct.E) A) and C)
F) A) and D)

Question 16

Scenario 18-3
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour.
-Refer to Scenario 18-3. During the summer months, what is Sam's opportunity cost of taking an hour off work to go hiking?

Accepted Answer

A)  $13
B)  between $11 and $12
C)  $11
D)  less than $11E) A) and D)
F) A) and C)

Question 17

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Accepted Answer

A) True 
 B)False

Question 18

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will

Accepted Answer

A)  increase.
B)  decrease.
C)  not change.
D)  It is not possible to determine what will happen to the equilibrium quantity.E) All of the above
F) C) and D)

Question 19

Table 18-10 
-Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Accepted Answer

A)  1 worker
B)  2 workers
C)  3 workers
D)  4 workersE) B) and C)
F) A) and C)

Question 20

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. In the fresh Pacific salmon product market, Gertrude has some control over the

Accepted Answer

A)  price she charges for her fresh salmon.
B)  quantity of fresh salmon that she supplies to the market.
C)  competitive environment of the market.
D)  supply of labor in the market.E) C) and D)
F) B) and D)

Exam 18: The Markets for the Factors of Production

From 1960 to 2015, inflation-adjusted wages increased by 165 percent in the U.S., and yet firms more than doubled the amount of labor they employed.

Correct Answer
verified

Correct Answer
verified

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct Answer
verified

Table 18-B Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. What is the value of the marginal product of the fifth worker?

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 18-10 -Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Correct Answer
verified

Fiona's hourly wage increases from $8 to $10. Which of the following describes a consequence of the increase in Fiona's wage?

Correct Answer
verified

A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.

Correct Answer
verified
The wage (opportunity cost of ...
View Answer

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

For a worker, the opportunity cost of an hour of leisure

Correct Answer
verified

Immigration is an important

Correct Answer
verified

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Correct Answer
verified

Correct Answer
verified

Table 18-3 -Refer to Table 18-3. For Firm C, the marginal product of labor is

Correct Answer
verified

An upward-sloping labor supply curve means that

Correct Answer
verified

Which of the following events would shift the labor supply curve?

Correct Answer
verified

Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. -Refer to Table 18-9. What is the marginal product of the fifth unit of labor?

Correct Answer
verified

Correct Answer
verified

Labor-saving technological advances decrease the marginal productivity of labor.

Correct Answer
verified

Figure 18-10 -Refer to Figure 18-10. Which of the following would shift of the labor demand curve from D₁ to D₂?

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

From 1960 to 2015, inflation-adjusted wages increased by 165 percent in the U.S., and yet firms more than doubled the amount of labor they employed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Correct AnswerverifiedShow Answer

Table 18-B Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. What is the value of the marginal product of the fifth worker?

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 18-10 -Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

Correct AnswerverifiedShow Answer

Fiona's hourly wage increases from $8 to $10. Which of the following describes a consequence of the increase in Fiona's wage?

Correct AnswerverifiedShow Answer

A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.

Correct AnswerverifiedThe wage (opportunity cost of ...View AnswerShow 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

For a worker, the opportunity cost of an hour of leisure

Correct AnswerverifiedShow Answer

Immigration is an important

Correct AnswerverifiedShow Answer

In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 18-3 -Refer to Table 18-3. For Firm C, the marginal product of labor is

Correct AnswerverifiedShow Answer

An upward-sloping labor supply curve means that

Correct AnswerverifiedShow Answer

Which of the following events would shift the labor supply curve?

Correct AnswerverifiedShow Answer

Table 18-9 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. -Refer to Table 18-9. What is the marginal product of the fifth unit of labor?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor-saving technological advances decrease the marginal productivity of labor.

Correct AnswerverifiedShow Answer

Figure 18-10 -Refer to Figure 18-10. Which of the following would shift of the labor demand curve from D1 to D2?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The wage (opportunity cost of ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Figure 18-10 -Refer to Figure 18-10. Which of the following would shift of the labor demand curve from D₁ to D₂?

Correct Answer
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