FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: The Markets for the Factors of Production

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Scenario 18-5 Suppose that workers from northern Minnesota, North Dakota, and Montana decide to emigrate to southern Canada. -Refer to Scenario 18-5. In the labor market in southern Canada, the equilibrium wage

A) and the equilibrium quantity of labor will rise.
B) and the equilibrium quantity of labor will fall.
C) will rise, and the equilibrium quantity of labor will fall.
D) will fall, and the equilibrium quantity of labor will rise.

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

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Figure 18-1 On the graph, L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1. Suppose the firm sells its output for $25 per unit, and it pays each of its workers $1,000 per week. Also, the firm's non-labor costs are fixed and they amount to $2,000. The firm maximizes profit by hiring

A) 2 workers.
B) 3 workers.
C) 4 workers.
D) 5 workers.

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

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

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

The rental price of land is

Because a firm's demand for a factor of production is derived from its decision to supply a good in the market, it is called a

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 marginal profit of the sixth worker?

The demand for computer programmers is inseparably tied to the supply of computer software.

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

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

Bill is a laborer. What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?

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?

The labor-supply curve is affected by the trade-off between labor and leisure.

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

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?

Figure 18-6 -Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers decrease, what happens in the market for bread bakers?

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases 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 wage for university economics professors will

Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager has determined that if she hires 12 workers, the store can sell 300 pounds of produce per day. If she hires 13 workers, the store can sell 370 pounds of produce per day. The store earns $4 for each pound of produce that it sells, and the manager pays each worker $80 per day. Assuming no changes in either the daily wages paid to store workers or the price at which the store sells its produce, what is the minimum number of sales that would allow the firm to increase its profits by hiring a 14th worker?

Which of the following is correct? Using data from 2014,

For a snow-removal business, the capital stock would include inputs such as snow blowers and shovels.