Question 1

Table 18-1.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 18-1.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) B) and C)
F) None of the above

Question 2

For a competitive,profit-maximizing firm,the demand curve for labor will shift in response to a change in the

Accepted Answer

A)   wage rate.
B)   quantity of labor demanded.
C)   price of the product that the firm sells.
D)   an increase in the supply of labor.E) C) and D)
F) A) and C)

Question 3

A competitive,profit-maximizing firm hires workers up to the point where the

Accepted Answer

A)   marginal product equals zero.
B)   marginal revenue product equals zero.
C)   marginal product equals the wage.
D)   value of the marginal product equals the wage.E) B) and C)
F) A) and D)

Question 4

Oil field workers' wages are directly tied to the world price of oil.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Linda's Autoplex performs oil changes on automobiles,light trucks,and sport utility vehicles.She is a profit-maximizing business owner whose firm operates in a competitive market.The marginal cost of an oil change is $20.The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour.What is the maximum hourly wage that Linda was willing to pay the last worker hired?

Accepted Answer

A)   $10
B)   $15
C)   $20
D)   $30E) A) and B)
F) A) and C)

Question 7

A competitive,profit-maximizing firm hires labor up to the point at which the wage is equal to the __________.

Accepted Answer

value of t...

Question 8

Competitive firms that maximize profits will hire workers until the value of the marginal product of labor

Accepted Answer

A)   equals the wage.
B)   equals the price of the final good.
C)   begins to fall.
D)   begins to rise.E) B) and C)
F) A) and B)

Question 9

Figure 18-9 
-Refer to Figure 18-9.If the price of apples increases,the

Accepted Answer

A)   demand for apple pickers will shift to the left.
B)   demand for apple pickers will shift to the right.
C)   supply of apple pickers will shift to the left.
D)   supply of apple pickers will shift to the right.E) A) and B)
F) A) and C)

Question 10

If the wages of a dentist increase,

Accepted Answer

A)   so does her opportunity cost of leisure.
B)   her hours of labor supplied may increase.
C)   her hours of labor supplied may decrease.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 11

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired,then the addition of the sixth worker causes total output to decline.

Accepted Answer

A) True 
 B)False

Question 12

Figure 18-9 
-Refer to Figure 18-9.If the price of apples increases,the equilibrium wage will

Accepted Answer

A)   increase,and more apple pickers will be hired.
B)   decrease,and more apple pickers will be hired.
C)   increase,and fewer apple pickers will be hired.
D)   decrease,and fewer apple pickers will be hired.E) B) and D)
F) A) and B)

Question 13

Which of the following accurately describes how earnings from capital eventually get paid to households?

Accepted Answer

A)   Households can own a stock of capital and rent it to firms.
B)   Households lend money to firms,who then pay interest to the households.
C)   Households that own stock in firms receive dividends.
D)   All of the above are correct.E) A) and D)
F) C) and D)

Question 14

The owners of capital resources are compensated according to the

Accepted Answer

A)   purchase price of the capital stock.
B)   marginal product of capital.
C)   value of the marginal product of capital.
D)   absolute level of production of final goods and services.E) B) and C)
F) None of the above

Question 15

In economics,the term capital refers to

Accepted Answer

A)   money.
B)   stocks and bonds.
C)   equipment and structures used in production.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 16

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the

Accepted Answer

A)   wage.
B)   marginal cost of the output.
C)   change in total profit.
D)   market price of the output.E) B) and C)
F) A) and B)

Question 17

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

Question 18

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Accepted Answer

Equilibriums in the markets for land and...

Question 19

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

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 18: The Market for the Factors of Production

Figure 18-9 -Refer to Figure 18-9.If the price of apples increases,the

Correct Answer
verified

Oil field workers' wages are directly tied to the world price of oil.

Correct Answer
verified

Table 18-1.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 18-1.Suppose the firm sells each box of envelopes that it produces for $7.50.How many workers should the firm hire?

Correct Answer
verified

The owners of capital resources are compensated according to the

Correct Answer
verified

An upward-sloping labor supply curve means that

Correct Answer
verified

A competitive,profit-maximizing firm hires labor up to the point at which the wage is equal to the __________.

Correct Answer
verified
value of t...
View Answer

Which of the following accurately describes how earnings from capital eventually get paid to households?

Correct Answer
verified

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Correct Answer
verified
Equilibriums in the markets for land and...
View Answer

If the wages of a dentist increase,

Correct Answer
verified

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

Correct Answer
verified

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the

Correct Answer
verified

In economics,the term capital refers to

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

A competitive,profit-maximizing firm hires workers up to the point where the

Correct Answer
verified

Competitive firms that maximize profits will hire workers until the value of the marginal product of labor

Correct Answer
verified

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired,then the addition of the sixth worker causes total output to decline.

Correct Answer
verified

Figure 18-9 -Refer to Figure 18-9.If the price of apples increases,the equilibrium wage will

Correct Answer
verified

For a competitive,profit-maximizing firm,the demand curve for labor will shift in response to a change in the

Correct Answer
verified

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

Correct Answer
verified

Exam 18: The Market for the Factors of Production

Figure 18-9 -Refer to Figure 18-9.If the price of apples increases,the

Correct AnswerverifiedShow Answer

Oil field workers' wages are directly tied to the world price of oil.

Correct AnswerverifiedShow Answer

Table 18-1.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 18-1.Suppose the firm sells each box of envelopes that it produces for $7.50.How many workers should the firm hire?

Correct AnswerverifiedShow Answer

The owners of capital resources are compensated according to the

Correct AnswerverifiedShow Answer

An upward-sloping labor supply curve means that

Correct AnswerverifiedShow Answer

A competitive,profit-maximizing firm hires labor up to the point at which the wage is equal to the __________.

Correct Answerverifiedvalue of t...View AnswerShow Answer

Which of the following accurately describes how earnings from capital eventually get paid to households?

Correct AnswerverifiedShow Answer

Describe the process by which the market for capital and the market for land reach equilibrium.As part of your description,elaborate on the role of the stock of the resource versus the flow of services from the resource.

Correct AnswerverifiedEquilibriums in the markets for land and...View AnswerShow Answer

If the wages of a dentist increase,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the

Correct AnswerverifiedShow Answer

In economics,the term capital refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A competitive,profit-maximizing firm hires workers up to the point where the

Correct AnswerverifiedShow Answer

Competitive firms that maximize profits will hire workers until the value of the marginal product of labor

Correct AnswerverifiedShow Answer

If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired,then the addition of the sixth worker causes total output to decline.

Correct AnswerverifiedShow Answer

Figure 18-9 -Refer to Figure 18-9.If the price of apples increases,the equilibrium wage will

Correct AnswerverifiedShow Answer

For a competitive,profit-maximizing firm,the demand curve for labor will shift in response to a change in the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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value of t...
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Equilibriums in the markets for land and...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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