Question 1

According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers

Accepted Answer

A)  have college degrees, on average, whereas fast food workers usually do not.
B)  produce a product of greater market value than do fast food workers.
C)  work in a less stressful environment than do fast food workers.
D)  are less likely to belong to a labor union than are fast food workers.E) None of the above
F) B) and C)

Question 2

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 20 hours per week in order to spend more time studying economics. For this price range, her labor supply curve is

Accepted Answer

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

Question 3

A household member's decision about how much labor to supply is most closely linked to

Accepted Answer

A)  the supply of factors of production other than labor.
B)  technological change.
C)  the tradeoff between leisure and work.
D)  immigration trends.E) A) and B)
F) A) and C)

Question 4

Economic theory predicts a close relationship between productivity and real wages. Does history confirm this relationship?

Accepted Answer

Yes. Data ...

Question 5

Rent, interest, and profit are all forms of income paid to the owners of

Accepted Answer

A)  aggregate stock.
B)  aggregate demand.
C)  firms and not-for-profit organizations.
D)  land and capital.E) C) and D)
F) None of the above

Question 6

Which of the following events would lead to an increase in the supply of labor?

Accepted Answer

A)  The price of a firm's product increases.
B)  A country experiences an increase in immigrant labor.
C)  The development of a new labor-augmenting technology.
D)  All of the above are correct.E) B) and C)
F) C) and D)

Question 7

Figure 18-10 1 = $20 and W2 = $22, and the market is always in equilibrium. A shift of the labor demand curve from D1 to D2 would A) increase the value of the marginal product of labor by $2. B) increase the value of the marginal product of labor by less than $2. C) decrease the value of the marginal product of labor by more than $2. D) not change the value of the marginal product of labor." class="answers-bank-image d-inline" rel="preload" >
-\Refer to Figure 18-10. Assume W1 = $20 and W2 = $22, and the market is always in equilibrium. A shift of the labor demand curve from D1 to D2 would

Accepted Answer

A)  increase the value of the marginal product of labor by $2.
B)  increase the value of the marginal product of labor by less than $2.
C)  decrease the value of the marginal product of labor by more than $2.
D)  not change the value of the marginal product of labor.E) C) and D)
F) All of the above

Question 8

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the price of tires decreases?

Accepted Answer

The decrease in the price of t...

Question 9

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-B. What is the third worker's marginal product of labor?

Accepted Answer

A)  125 cupcakes
B)  150 cupcakes
C)  200 cupcakes
D)  475 cupcakesE) A) and B)
F) B) and D)

Question 10

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding decrease in wages.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct? An individual worker's labor supply curve

Accepted Answer

A)  can never be backward sloping.
B)  slopes backward if that person responds to a higher wage by taking fewer hours of leisure per week.
C)  slopes backward if that person responds to a higher opportunity cost of leisure by working fewer hours per week.
D)  slopes upward if that person works the same number of hours per week, regardless of the opportunity cost of leisure.E) None of the above
F) A) and D)

Question 12

The negative slope of the value of marginal product curve is most easily explained by

Accepted Answer

A)  tight labor markets.
B)  a surplus of workers.
C)  diminishing marginal product.
D)  diminishing marginal cost.E) A) and B)
F) All of the above

Question 13

Table 18-7 
-Refer to Table 18-7. To maximize its profit, how many workers will the firm hire?

Accepted Answer

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

Question 14

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 fourth worker?

Accepted Answer

A)  $280
B)  $25
C)  -$5
D)  -$45E) All of the above
F) C) and D)

Question 15

What are the typical effects on the labor market of technological progress?

Accepted Answer

Technological progress typical...

Question 16

Most of the total income earned in the U.S. economy is ultimately paid to

Accepted Answer

A)  households in the form of wages and fringe benefits.
B)  landowners in the form of rent.
C)  landowners in the form of interest.
D)  landowners in the form of profit.E) A) and B)
F) B) and D)

Question 17

Table 18-7 
-Refer to Table 18-7. It is apparent from this table that increasing marginal product

Accepted Answer

A)  occurs only after the first worker is hired.
B)  occurs only after the second worker is hired.
C)  occurs only after the third worker is hired.
D)  never occurs.E) A) and B)
F) A) and C)

Question 18

Which of the following events would shift the labor supply curve?

Accepted Answer

A)  changes in the number of women willing to work
B)  immigration of workers
C)  changing attitudes towards work
D)  All of the above are correct.E) B) and C)
F) All of the above

Question 19

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

Accepted Answer

A)  4 units
B)  6 units
C)  8 units
D)  12 unitsE) A) and C)
F) A) and B)

Question 20

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. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

Accepted Answer

The marginal product of the se...

Exam 18: The Markets for the Factors of Production

The negative slope of the value of marginal product curve is most easily explained by

Correct Answer
verified

Rent, interest, and profit are all forms of income paid to the owners of

Correct Answer
verified

What are the typical effects on the labor market of technological progress?

Correct Answer
verified
Technological progress typical...
View Answer

A household member's decision about how much labor to supply is most closely linked to

Correct Answer
verified

Table 18-7 -Refer to Table 18-7. To maximize its profit, how many workers will the firm hire?

Correct Answer
verified

Which of the following events would lead to an increase in the supply of labor?

Correct Answer
verified

According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers

Correct Answer
verified

Most of the total income earned in the U.S. economy is ultimately paid to

Correct Answer
verified

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding decrease in wages.

Correct Answer
verified

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 fourth worker?

Correct Answer
verified

Table 18-7 -Refer to Table 18-7. It is apparent from this table that increasing marginal product

Correct Answer
verified

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. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

Correct Answer
verified
The marginal product of the se...
View Answer

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

Correct Answer
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Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 20 hours per week in order to spend more time studying economics. For this price range, her labor supply curve is

Correct Answer
verified

Economic theory predicts a close relationship between productivity and real wages. Does history confirm this relationship?

Correct Answer
verified
Yes. Data ...
View Answer

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-B. What is the third worker's marginal product of labor?

Correct Answer
verified

Which of the following statements is correct? An individual worker's labor supply curve

Correct Answer
verified

Which of the following events would shift the labor supply curve?

Correct Answer
verified

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the price of tires decreases?

Correct Answer
verified
The decrease in the price of t...
View Answer

Exam 18: The Markets for the Factors of Production

The negative slope of the value of marginal product curve is most easily explained by

Correct AnswerverifiedShow Answer

Rent, interest, and profit are all forms of income paid to the owners of

Correct AnswerverifiedShow Answer

What are the typical effects on the labor market of technological progress?

Correct AnswerverifiedTechnological progress typical...View AnswerShow Answer

A household member's decision about how much labor to supply is most closely linked to

Correct AnswerverifiedShow Answer

Table 18-7 -Refer to Table 18-7. To maximize its profit, how many workers will the firm hire?

Correct AnswerverifiedShow Answer

Which of the following events would lead to an increase in the supply of labor?

Correct AnswerverifiedShow Answer

According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers

Correct AnswerverifiedShow Answer

Most of the total income earned in the U.S. economy is ultimately paid to

Correct AnswerverifiedShow Answer

Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding decrease in wages.

Correct AnswerverifiedShow Answer

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 fourth worker?

Correct AnswerverifiedShow Answer

Table 18-7 -Refer to Table 18-7. It is apparent from this table that increasing marginal product

Correct AnswerverifiedShow Answer

Figure 18-10 -\Refer to Figure 18-10. Assume W1 = $20 and W2 = $22, and the market is always in equilibrium. A shift of the labor demand curve from D1 to D2 would

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. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

Correct AnswerverifiedThe marginal product of the se...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 20 hours per week in order to spend more time studying economics. For this price range, her labor supply curve is

Correct AnswerverifiedShow Answer

Economic theory predicts a close relationship between productivity and real wages. Does history confirm this relationship?

Correct AnswerverifiedYes. Data ...View AnswerShow Answer

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-B. What is the third worker's marginal product of labor?

Correct AnswerverifiedShow Answer

Which of the following statements is correct? An individual worker's labor supply curve

Correct AnswerverifiedShow Answer

Which of the following events would shift the labor supply curve?

Correct AnswerverifiedShow Answer

Christine works for a firm that makes tires for cars. How is Christine's wage affected if the price of tires decreases?

Correct AnswerverifiedThe decrease in the price of t...View AnswerShow Answer

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Technological progress typical...
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The marginal product of the se...
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Yes. Data ...
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The decrease in the price of t...
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