Question 1

Figure 18-7 2 and the current wage is W1, A) there is a surplus of labor. B) the quantity of labor demanded exceeds the quantity of labor supplied. C) an increase in the minimum wage could restore equilibrium in the market. D) firms will need to raise the wage to restore equilibrium." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-7. If the relevant labor supply curve is S2 and the current wage is W1,

Accepted Answer

A)  there is a surplus of labor.
B)  the quantity of labor demanded exceeds the quantity of labor supplied.
C)  an increase in the minimum wage could restore equilibrium in the market.
D)  firms will need to raise the wage to restore equilibrium.E) None of the above
F) A) and D)

Question 2

Table 18-7 
-Refer to Table 18-7. What is the value of the cell labeled II?

Accepted Answer

A)  -$100
B)  $100
C)  $200
D)  $300E) All of the above
F) B) and D)

Question 3

Figure 18-8
This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. 1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market.   -Refer to Figure 18-8. What is measured along the vertical axis on the graph? A) the quantity of automobiles produced B) the price of automobiles C) the wage paid to automobile workers D) time spent by workers producing automobiles" class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-8. What is measured along the vertical axis on the graph?

Accepted Answer

A)  the quantity of automobiles produced
B)  the price of automobiles
C)  the wage paid to automobile workers
D)  time spent by workers producing automobilesE) A) and B)
F) A) and C)

Question 4

The equilibrium purchase price of an acre of land depends upon the current value of the marginal product of land and upon the __________.

Accepted Answer

value of the margina...

Question 5

Table 18-6 
-Refer to Table 18-6. What is the value for the cell labeled CC?

Accepted Answer

A)  650
B)  600
C)  100
D)  50E) C) and D)
F) B) and C)

Question 6

Diminishing marginal product occurs when

Accepted Answer

A)  the increases to total output are declining.
B)  marginal product is negative.
C)  total output is decreasing.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 7

Figure 18-4
The graph below illustrates the market for nurses who work in doctors' offices. 
-Refer to Figure 18-4. Each August many students entering college for the first time visit a doctor's office to have an MMR booster vaccine. If a new labor-augmenting technology exists that allows nurses to administer the vaccine more quickly and accurately, what happens in the market for nurses?

Accepted Answer

A)  Demand increases from D1 to D2.
B)  Demand decreases from D2 to D1.
C)  Supply increases from S1 to S2.
D)  Supply decreases from S2 to S1.E) B) and C)
F) A) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Because workers in the U.S. economy receive most of the total income earned, which of the following factors of production is considered to be the most important?

Accepted Answer

A)  profit
B)  wages
C)  interest
D)  laborE) A) and B)
F) A) and C)

Question 10

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. The relationship depicted on the graph is called a _______ function.

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 11

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) None of the above

Question 12

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) B) and D)
F) All of the above

Question 13

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

Accepted Answer

A)  increasing.
B)  constant.
C)  decreasing.
D)  negative.E) B) and D)
F) A) and B)

Question 14

When labor supply increases,

Accepted Answer

A)  the marginal productivity of workers always increases.
B)  profit-maximizing firms reduce employment.
C)  wages increase as long as labor supply is upward sloping.
D)  wages decrease as long as labor demand is downward sloping.E) C) and D)
F) All of the above

Question 15

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 hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?

Accepted Answer

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

Question 16

An increase in a product's price will shift the labor demand curve for workers who produce that product to the left.

Accepted Answer

A) True 
 B)False

Question 17

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, what effect did this process have on the labor market for computer programmers? The equilibrium wage

Accepted Answer

A)  increased, and the equilibrium quantity of labor increased.
B)  increased, and the equilibrium quantity of labor decreased.
C)  decreased, and the equilibrium quantity of labor increased.
D)  decreased, and the equilibrium quantity of labor decreased.E) A) and D)
F) B) and C)

Question 18

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is

Accepted Answer

A)  20 radios.
B)  90 radios.
C)  $200.
D)  $400.E) A) and D)
F) B) and D)

Question 19

Table 18-2 
-Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $2.50, how many workers would the firm employ if the weekly wage rate is $375?

Accepted Answer

A)  2
B)  3
C)  4
D)  5E) B) and D)
F) B) and C)

Question 20

If the value of the marginal product of labor exceeds the wage, then the firm could

Accepted Answer

A)  increase profit by hiring additional labor.
B)  increase profit by reducing the amount of labor hired.
C)  increase revenue by lowering output.
D)  reduce total cost by hiring additional workers.E) B) and D)
F) None of the above

Exam 18: The Markets for the Factors of Production

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

Correct Answer
verified

An increase in a product's price will shift the labor demand curve for workers who produce that product to the left.

Correct Answer
verified

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. Suppose the firm hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?

Correct Answer
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If the value of the marginal product of labor exceeds the wage, then the firm could

Correct Answer
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Table 18-2 -Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $2.50, how many workers would the firm employ if the weekly wage rate is $375?

Correct Answer
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Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. The relationship depicted on the graph is called a _______ function.

Correct Answer
verified

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, what effect did this process have on the labor market for computer programmers? The equilibrium wage

Correct Answer
verified

Correct Answer
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When labor supply increases,

Correct Answer
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Because workers in the U.S. economy receive most of the total income earned, which of the following factors of production is considered to be the most important?

Correct Answer
verified

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is

Correct Answer
verified

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

Correct Answer
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Table 18-7 -Refer to Table 18-7. What is the value of the cell labeled II?

Correct Answer
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Diminishing marginal product occurs when

Correct Answer
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A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the price of the final good.

Correct Answer
verified

The equilibrium purchase price of an acre of land depends upon the current value of the marginal product of land and upon the __________.

Correct Answer
verified
value of the margina...
View Answer

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

Correct Answer
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Table 18-6 -Refer to Table 18-6. What is the value for the cell labeled CC?

Correct Answer
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Figure 18-7 -Refer to Figure 18-7. If the relevant labor supply curve is S₂ and the current wage is W₁,

Correct Answer
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Exam 18: The Markets for the Factors of Production

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

Correct AnswerverifiedShow Answer

An increase in a product's price will shift the labor demand curve for workers who produce that product to the left.

Correct AnswerverifiedShow Answer

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. Suppose the firm hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?

Correct AnswerverifiedShow Answer

If the value of the marginal product of labor exceeds the wage, then the firm could

Correct AnswerverifiedShow Answer

Table 18-2 -Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $2.50, how many workers would the firm employ if the weekly wage rate is $375?

Correct AnswerverifiedShow Answer

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. The relationship depicted on the graph is called a _______ function.

Correct AnswerverifiedShow Answer

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, what effect did this process have on the labor market for computer programmers? The equilibrium wage

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When labor supply increases,

Correct AnswerverifiedShow Answer

Because workers in the U.S. economy receive most of the total income earned, which of the following factors of production is considered to be the most important?

Correct AnswerverifiedShow Answer

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 18-7 -Refer to Table 18-7. What is the value of the cell labeled II?

Correct AnswerverifiedShow Answer

Diminishing marginal product occurs when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The equilibrium purchase price of an acre of land depends upon the current value of the marginal product of land and upon the __________.

Correct Answerverifiedvalue of the margina...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Table 18-6 -Refer to Table 18-6. What is the value for the cell labeled CC?

Correct AnswerverifiedShow Answer

Figure 18-7 -Refer to Figure 18-7. If the relevant labor supply curve is S2 and the current wage is W1,

Correct AnswerverifiedShow Answer

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value of the margina...
View Answer

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Figure 18-7 -Refer to Figure 18-7. If the relevant labor supply curve is S₂ and the current wage is W₁,

Correct Answer
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