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Exam 18: The Markets for the Factors of Production

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Question 111

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In 2015, the total income of all U.S. residents was approximately $16 trillion.

A) True
B) False

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Question 112

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Scenario 18-4 In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting. -Refer to Scenario 18-4. The Albanian civil war probably affected Italian labor markets by causing

A) total employment in Italy to decrease.
B) wages in Italy to increase.
C) the marginal product of labor in Italy to decrease.
D) All of the above are correct.

E) B) and D)
F) B) and C)

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Question 113

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U.S. immigrants are less likely to be working than immigrants in other developed countries.

Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium wage in the labor market for computer programmers

Figure 18-3 -Refer to Figure 18-3. What is the marginal product of the third worker?

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 and the firm pays each unit of labor a wage equal to $320 per day. How many units of labor should the firm hire to maximize profit?

Which of the following events could decrease the demand for labor?

If a worker responds to an increase in the opportunity cost of leisure by taking less leisure, then his labor supply curve is

Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?

Table 18-1 -Refer to Table 18-1. What is the marginal product of the third worker?

The supply of labor in any one market depends on the opportunities available in other markets.

The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure.

Scenario 18-6 Rocchetta Industries manufactures and supplies bottled water in Mexico. As a result of a contamination of water supplies at many of Mexico's resort communities, the demand for bottled water has increased. -Refer to Scenario 18-6. When the labor market adjusts to its new equilibrium, we would expect the

The marginal product of land depends on the quantity of land that is available.

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

A firm hires some number of custodians to clean a large warehouse. When only a few custodians are hired, they can quickly find and remove a lot of dust and debris. As the number of custodians increases, additional custodians have to go to greater lengths and spend more time to find and remove additional dust and debris. What property of production functions is relevant to the custodians' situation?

Scenario 18-7 Suppose the following events occur in the market for university economics professors. Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor. Event 2: An increasing number of students in U.S. primary and secondary schools increases the number of students entering college, increasing the output price of university economics professors' services. -Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Stock dividends and interest payments are examples of factors of production.

If a worker responds to an increase in the opportunity cost of leisure by taking more leisure, then her labor supply curve is

Economists refer to the inputs that firms use to produce goods and services as