Question 1

Figure 18-4
The graph below illustrates the market for nurses who work in doctors' offices. 
-Refer to Figure 18-4. If doctors' offices adopt new labor-augmenting technologies, 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) All of the above
F) A) and D)

Question 2

Table 18-8
Harold and Maude own a dance studio where they and their employees teach ballroom dancing. Their company is a competitive, profit-maximizing firm. Harold and Maude's production function is detailed in the table below. 
-Refer to Table 18-8. If Harold and Maude offer a special sale for one day where dance lessons are $5 each, and if they pay their workers $200 per day for that day, what is the maximum number of workers that they will hire for that day?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) A) and B)
F) A) and D)

Question 3

When you receive interest on your bank account, that income is part of the economy's __________ income.

Accepted Answer

The answer of When you receive interest on your bank...

Question 4

Which of the following qualify as part of our economy's capital income?

Accepted Answer

A)  wages paid to workers
B)  interest paid to the owners of corporate bonds
C)  rent paid on farmland
D)  All of the above are correct.E) A) and D)
F) A) and C)

Question 5

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 production process depicted on the graph exhibits _______ marginal product of labor.

Accepted Answer

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

Question 6

A worker's contribution to a firm's revenue is measured directly by the worker's

Accepted Answer

A)  marginal product.
B)  value of marginal product.
C)  marginal product multiplied by the worker's wage.
D)  value of marginal product multiplied by the output price.E) B) and C)
F) C) and D)

Question 7

Carolyn's Pottery Shop produces vases that sell for $15 each. Assume that labor is the only input that varies for the firm. If Carolyn hires 10 workers, she can produce and sell 500 vases per week. If she hires 11 workers, she can produce and sell 560 vases per week. Carolyn pays each of her workers $400 per week. Which of the following is correct?

Accepted Answer

A)  For the 11th worker, the marginal profit is $500.
B)  For the 11th worker, the marginal revenue product is $500.
C)  The firm is maximizing its profit.
D)  If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.E) A) and B)
F) C) and D)

Question 8

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is

Accepted Answer

A)  minimizing labor costs.
B)  guaranteeing that labor costs do not exceed fixed costs.
C)  maximizing the number of workers it can hire and still experience a positive profit.
D)  maximizing profit.E) C) and D)
F) A) and B)

Question 9

Which of the following is an example of a factor of production?

Accepted Answer

A)  rent
B)  interest
C)  land
D)  Social Security paymentsE) A) and B)
F) A) and C)

Question 10

For maximum profit, a firm hires labor up to the point at which the wage equals (i) 
The value of the marginal product of labor.
(ii) 
The marginal cost of an additional unit of output.
(iii) 
Output price multiplied by the marginal product of labor.

Accepted Answer

A)  (i)  and (ii)  only
B)  (i)  and (iii)  only
C)  (ii)  and (iii)  only
D)  (i) , (ii) , and (iii) E) A) and D)
F) A) and C)

Question 11

The demand for rocket scientists is inseparably linked to the supply of __________.

Accepted Answer

The answer of The demand for rocket scientists is inseparably...

Question 12

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. The marginal product of labor begins to diminish with the addition of which worker?

Accepted Answer

A)  the 1st worker
B)  the 2nd worker
C)  the 3rd worker
D)  the 4th workerE) All of the above
F) C) and D)

Question 13

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) C) and D)
F) A) and D)

Question 14

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 $10, how many workers would the firm employ if the weekly wage rate is $375?

Accepted Answer

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

Question 15

If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?

Accepted Answer

We would expect the number of ...

Question 16

The U.S. economy has been very successful in absorbing immigrants and putting them to work.

Accepted Answer

A) True 
 B)False

Question 17

If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.

Accepted Answer

A) True 
 B)False

Question 18

To say that a firm is competitive in the labor market is to say that the firm

Accepted Answer

A)  has little or no control over the number of workers it hires.
B)  has little or no control over the wage it pays its workers.
C)  is aggressive in pursuing the most skilled workers in the labor market.
D)  is aggressive in trying to keep its workers' wages low.E) A) and B)
F) All of the above

Question 19

A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is

Accepted Answer

A)  $480.
B)  $960.
C)  $1,200.
D)  $2,400.E) C) and D)
F) All of the above

Question 20

Labor-saving technological advances increase the marginal productivity of labor.

Accepted Answer

A) True 
 B)False

Exam 18: The Markets for the Factors of Production

Correct Answer
verified

When you receive interest on your bank account, that income is part of the economy's __________ income.

Correct Answer
verified

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 production process depicted on the graph exhibits _______ marginal product of labor.

Correct Answer
verified

Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. -Refer to Figure 18-4. If doctors' offices adopt new labor-augmenting technologies, what happens in the market for nurses?

Correct Answer
verified

Correct Answer
verified

The U.S. economy has been very successful in absorbing immigrants and putting them to work.

Correct Answer
verified

Labor-saving technological advances increase the marginal productivity of labor.

Correct Answer
verified

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 $10, how many workers would the firm employ if the weekly wage rate is $375?

Correct Answer
verified

Which of the following qualify as part of our economy's capital income?

Correct Answer
verified

A worker's contribution to a firm's revenue is measured directly by the worker's

Correct Answer
verified

If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?

Correct Answer
verified
We would expect the number of ...
View Answer

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is

Correct Answer
verified

The demand for rocket scientists is inseparably linked to the supply of __________.

Correct Answer
verified

For maximum profit, a firm hires labor up to the point at which the wage equals (i) The value of the marginal product of labor. (ii) The marginal cost of an additional unit of output. (iii) Output price multiplied by the marginal product of labor.

Correct Answer
verified

The Black Death in fourteenth-century Europe resulted in

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. The marginal product of labor begins to diminish with the addition of which worker?

Correct Answer
verified

If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.

Correct Answer
verified

Correct Answer
verified

To say that a firm is competitive in the labor market is to say that the firm

Correct Answer
verified

Which of the following is an example of a factor of production?

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

Correct AnswerverifiedShow Answer

When you receive interest on your bank account, that income is part of the economy's __________ income.

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 production process depicted on the graph exhibits _______ marginal product of labor.

Correct AnswerverifiedShow Answer

Figure 18-4 The graph below illustrates the market for nurses who work in doctors' offices. -Refer to Figure 18-4. If doctors' offices adopt new labor-augmenting technologies, what happens in the market for nurses?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S. economy has been very successful in absorbing immigrants and putting them to work.

Correct AnswerverifiedShow Answer

Labor-saving technological advances increase the marginal productivity of labor.

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 $10, how many workers would the firm employ if the weekly wage rate is $375?

Correct AnswerverifiedShow Answer

Which of the following qualify as part of our economy's capital income?

Correct AnswerverifiedShow Answer

A worker's contribution to a firm's revenue is measured directly by the worker's

Correct AnswerverifiedShow Answer

If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?

Correct AnswerverifiedWe would expect the number of ...View AnswerShow Answer

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is

Correct AnswerverifiedShow Answer

The demand for rocket scientists is inseparably linked to the supply of __________.

Correct AnswerverifiedShow Answer

For maximum profit, a firm hires labor up to the point at which the wage equals (i) The value of the marginal product of labor. (ii) The marginal cost of an additional unit of output. (iii) Output price multiplied by the marginal product of labor.

Correct AnswerverifiedShow Answer

The Black Death in fourteenth-century Europe resulted in

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. The marginal product of labor begins to diminish with the addition of which worker?

Correct AnswerverifiedShow Answer

If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To say that a firm is competitive in the labor market is to say that the firm

Correct AnswerverifiedShow Answer

Which of the following is an example of a factor of production?

Correct AnswerverifiedShow Answer

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We would expect the number of ...
View Answer

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