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Exam 18: The Markets for the Factors of Production

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Question 141

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An increase in the value of the marginal product of labor has the effect of increasing the

A) demand for labor.
B) wage.
C) quantity of labor employed.
D) All of the above are correct.

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

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Question 142

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The marginal product of labor is defined as the change in

A) output per additional unit of revenue.
B) output per additional unit of labor.
C) revenue per additional unit of labor.
D) revenue per additional unit of output.

E) None of the above
F) B) and C)

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Question 143

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The determination of the demand for land is essentially the same as the determination of the

Figure 18-4 -Refer to Figure 18-4.Assume W₁ = $20 and W₂ = $22 and the market is always in equilibrium.Then the shift of the labor demand curve from D₁ to D₂

Scenario 18-2 Jerry has two jobs, one for the winter and one for the summer. In the winter, he workers as a lift attendant at a ski resort where he earns $10 per hour. During the summer, Jerry drives a tour bus around the ski resort, earning $12 per hour. -Refer to Scenario 18-2.During the summer months,what is Jerry's opportunity cost of taking an hour off work to go hiking?

Consider the labor market for heath care workers,which is in equilibrium.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,what effect does this have on the equilibrium wage of health care employees?

The labor supply curve shifts when

In economics,the term capital is used to refer to

Scenario 18-2 Jerry has two jobs, one for the winter and one for the summer. In the winter, he workers as a lift attendant at a ski resort where he earns $10 per hour. During the summer, Jerry drives a tour bus around the ski resort, earning $12 per hour. -Refer to Scenario 18-2.If Jerry takes fewer hours of leisure in the summer than in the winter,we can assume that his labor supply curve

An increase in the supply of labor has the effect of decreasing the

Because of diminishing returns,a factor in scarce supply has

Table 18-2 Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day. -Refer to Table 18-2.The marginal product of labor begins to diminish with the addition of which worker?

Omega Custom Cabinets produces and sells custom bathroom vanities.The firm has determined that if it hires 10 workers,it can produce 20 vanities per week.If it hires 11 workers,it can produce 22 vanities per week.It sells each vanity for $800,and it pays each of its workers $1,000 per week.

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.

A change in the supply of any one factor alters the earnings of all the other factors.

Table 18-5 -Refer to Table 18-5.What is the value for the cell labeled CC?

A competitive,profit-maximizing firm hires workers up to the point at which the wage equals the price of the final good.

Labor-saving technology causes which of the following? (i) The marginal productivity of labor increases. (ii) The marginal productivity of labor decreases. (iii) Labor demand shifts to the right. (iv) Labor demand shifts to the left.

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

The value of the marginal product of labor is equal to the change in