Question 1

Figure 18-5 1 due to a shift in demand. B)  fall below w1 due to a shift in supply. C)  rise above w1 due to a shift in demand. D)  rise above w1 due to a shift in supply." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-5.If the apple pickers start working fewer hours (by taking more vacation time) ,the equilibrium wage will

Accepted Answer

A)   fall below w1 due to a shift in demand.
B)   fall below w1 due to a shift in supply.
C)   rise above w1 due to a shift in demand.
D)   rise above w1 due to a shift in supply.E) C) and D)
F) None of the above

Question 2

Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 16 hours per week,but now she decides to work 20 hours per week.For this price range,her labor supply curve is

Accepted Answer

A)   vertical.
B)   horizontal.
C)   upward sloping.
D)   backward sloping.E) None of the above
F) B) and D)

Question 3

A Luddite would be expected to oppose

Accepted Answer

A)   working more than eight hours per day.
B)   technological advance.
C)   national policies that limit immigration into the country.
D)   the use of economic models to demonstrate market equilibrium.E) A) and D)
F) B) and C)

Question 4

Suppose that the market for labor is initially in equilibrium.Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67.Then

Accepted Answer

A)   the equilibrium wage and the quantity of labor will both rise.
B)   the equilibrium wage and the quantity of labor will both fall.
C)   the equilibrium wage will rise and the quantity of labor will fall.
D)   the equilibrium wage will fall and the quantity of labor will rise.E) A) and D)
F) None of the above

Question 5

Suppose that workers immigrate to Minnesota from Canada.Which of the following correctly describes what would happen in the market for labor in Minnesota?

Accepted Answer

A)   The equilibrium wage would increase,and the quantity of labor would increase.With more workers,the added output from an extra worker is larger.
B)   The equilibrium wage would decrease,and the quantity of labor would decrease..With fewer workers,the added output from an extra worker is smaller.
C)   The equilibrium wage would decrease,and the quantity of labor would increase.With more workers,the added output from an extra worker is smaller.
D)   The equilibrium wage would decrease,and the quantity of labor would increase.With more workers,the added output from an extra worker is larger.E) B) and C)
F) A) and D)

Question 6

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

A)   a lower marginal product of labor of surviving workers.
B)   a higher marginal product of labor of surviving workers.
C)   economic hardship for surviving peasants.
D)   economic prosperity for surviving landowners.E) A) and B)
F) All of the above

Question 7

Figure 18-6 1 to D2 could possibly be explained by A)  technological progress. B)  an increase in the price of firms' output. C)  an increase in the supply of a relevant factor of production other than labor. D)  All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-6.The shift of the labor demand curve from D1 to D2 could possibly be explained by

Accepted Answer

A)   technological progress.
B)   an increase in the price of firms' output.
C)   an increase in the supply of a relevant factor of production other than labor.
D)   All of the above are correct.E) A) and D)
F) C) and D)

Question 8

The purchase price of capital is

Accepted Answer

A)   the value of the capital to the firm.
B)   always less than the rental price.
C)   the price received from the flow of some capital services.
D)   the price a person pays to own that factor of production indefinitely.E) A) and D)
F) A) and C)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A decrease in population can be expected to

Accepted Answer

A)   increase the marginal product of land.
B)   decrease the supply of land.
C)   decrease the rents on land.
D)   increase the demand for land.E) None of the above
F) All of the above

Question 11

Figure 18-5 
-Refer to Figure 18-5.If the price of apples increases,the 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) None of the above
F) A) and B)

Question 12

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.The marginal product of the second worker is

Accepted Answer

A)   90 units of output.
B)   105 units of output.
C)   210 units of output.
D)   330 units of output.E) A) and B)
F) None of the above

Question 13

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

Accepted Answer

A)   The opportunity cost of Fred's leisure time has decreased.
B)   Fred may choose to work fewer hours due to the increase in his wage.
C)   If Fred's labor supply curve is upward sloping,Fred will choose to work fewer hours.
D)   Both a and b are correct.E) B) and C)
F) None of the above

Question 14

Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land.What happens to land not classified as "wetlands" within the community?

Accepted Answer

A)   (i) and (ii) 
B)   (ii) and (iii) 
C)   (i) and (iii) 
D)   (ii) onlyE) None of the above
F) A) and B)

Question 15

A significant slowdown in the growth of productivity persisted in the U.S.economy between

Accepted Answer

A)   1959 and 1973.
B)   1973 and 1995.
C)   1973 and the present.
D)   1995 and the present.E) B) and C)
F) A) and B)

Question 16

Prairie Cabinets produces and sells custom kitchen cabinets.The firm has determined that if it hires 10 workers,it can produce 10 sets of cabinets per day.If it hires 11 workers,it can produce 12 sets of cabinets per day.It sells each set of cabinets for $2,000,and it pays each of its workers $200 per day.Which of the following is correct?

Accepted Answer

A)   For the 11th worker,the value of the marginal product of labor is $400.
B)   For the 11th worker,the value of the marginal product of labor is $4,000.
C)   The firm should not hire the 11th worker since hiring this worker reduces profit.
D)   In order to justify hiring the 11th worker the firm will need to raise the price of a set of cabinets.E) C) and D)
F) None of the above

Question 17

When firms are able to increase the amount of physical capital available to workers,the

Accepted Answer

A)   marginal product of labor will decrease.
B)   value of the marginal product of labor will decrease.
C)   value of the marginal product of labor will increase.
D)   final product price will increase.E) B) and C)
F) All of the above

Question 18

Table 18-3
 
-Refer to Table 18-3.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?

Accepted Answer

A)   2 units
B)   3 units
C)   4 units
D)   5 unitsE) B) and C)
F) None of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Accepted Answer

A) True 
 B)False

Exam 18: The Markets for the Factors of Production

Correct Answer
verified

The Black Death in fourteenth-century Europe resulted in

Correct Answer
verified

A decrease in population can be expected to

Correct Answer
verified

When firms are able to increase the amount of physical capital available to workers,the

Correct Answer
verified

As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Correct Answer
verified

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

Correct Answer
verified

Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 16 hours per week,but now she decides to work 20 hours per week.For this price range,her labor supply curve is

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land.What happens to land not classified as "wetlands" within the community?

Correct Answer
verified

Suppose that workers immigrate to Minnesota from Canada.Which of the following correctly describes what would happen in the market for labor in Minnesota?

Correct Answer
verified

Figure 18-6 -Refer to Figure 18-6.The shift of the labor demand curve from D₁ to D₂ could possibly be explained by

Correct Answer
verified

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.The marginal product of the second worker is

Correct Answer
verified

Figure 18-5 -Refer to Figure 18-5.If the apple pickers start working fewer hours (by taking more vacation time) ,the equilibrium wage will

Correct Answer
verified

Suppose that the market for labor is initially in equilibrium.Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67.Then

Correct Answer
verified

A Luddite would be expected to oppose

Correct Answer
verified

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

Correct Answer
verified

The purchase price of capital is

Correct Answer
verified

Figure 18-5 -Refer to Figure 18-5.If the price of apples increases,the wage will

Correct Answer
verified

A significant slowdown in the growth of productivity persisted in the U.S.economy between

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

Correct AnswerverifiedShow Answer

The Black Death in fourteenth-century Europe resulted in

Correct AnswerverifiedShow Answer

A decrease in population can be expected to

Correct AnswerverifiedShow Answer

When firms are able to increase the amount of physical capital available to workers,the

Correct AnswerverifiedShow Answer

As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 16 hours per week,but now she decides to work 20 hours per week.For this price range,her labor supply curve is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land.What happens to land not classified as "wetlands" within the community?

Correct AnswerverifiedShow Answer

Suppose that workers immigrate to Minnesota from Canada.Which of the following correctly describes what would happen in the market for labor in Minnesota?

Correct AnswerverifiedShow Answer

Figure 18-6 -Refer to Figure 18-6.The shift of the labor demand curve from D1 to D2 could possibly be explained by

Correct AnswerverifiedShow Answer

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.The marginal product of the second worker is

Correct AnswerverifiedShow Answer

Figure 18-5 -Refer to Figure 18-5.If the apple pickers start working fewer hours (by taking more vacation time) ,the equilibrium wage will

Correct AnswerverifiedShow Answer

Suppose that the market for labor is initially in equilibrium.Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67.Then

Correct AnswerverifiedShow Answer

A Luddite would be expected to oppose

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purchase price of capital is

Correct AnswerverifiedShow Answer

Figure 18-5 -Refer to Figure 18-5.If the price of apples increases,the wage will

Correct AnswerverifiedShow Answer

A significant slowdown in the growth of productivity persisted in the U.S.economy between

Correct AnswerverifiedShow Answer

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Figure 18-6 -Refer to Figure 18-6.The shift of the labor demand curve from D₁ to D₂ could possibly be explained by

Correct Answer
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