Question 1

Table 18-9
 
-Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Accepted Answer

A)   $200
B)   $300
C)   $400
D)   $500E) C) and D)
F) All of the above

Question 2

Which of the following would be an example of capital for a computer software firm?
(i) the firm's computer programmers
(ii) the wages the firm pays to its computer programmers
(iii) computer equipment

Accepted Answer

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

Question 3

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

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

Question 4

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 sells its output for $20 per unit,and it pays each of its workers $1,250 per week.The firm maximizes profit by hiring

Accepted Answer

A)   3 workers.
B)   4 workers.
C)   5 workers.
D)   6 workers.E) A) and D)
F) None of the above

Question 5

Which of the following is not an example of a factor of production?

Accepted Answer

A)   labor
B)   interest
C)   land
D)   capitalE) C) and D)
F) B) and D)

Question 6

John owns a number of hot dog stands in New York City.He hires workers to sell hot dogs at his stands.Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Accepted Answer

A)   Hollywood glamorization of a new movie about a hot dog vendor leads hundreds of high-school students in New York City to apply for a job at John's.
B)   The price of hot dogs falls.
C)   The local hot dog vendors form a union increasing hot dog vendor wages.
D)   The demand curve for hot dogs shifts to the right.E) None of the above
F) A) and B)

Question 7

As a result of a fire,a small business owner loses some of her computers and other equipment.If the property of diminishing returns applies to all factors of production,she should expect to see

Accepted Answer

A)   an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
B)   an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.
C)   a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
D)   a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.E) All of the above
F) A) and B)

Question 8

Table 18-8
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.
 
-Refer to Table 18-8.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.What is the value of the marginal product of labor for the second worker?

Accepted Answer

A)   $300
B)   $650
C)   $9,600
D)   $20,800E) None of the above
F) A) and D)

Question 9

Table 18-1
 
-Refer to Table 18-1.Suppose that the firm pays its workers $50 per day.Each unit of output sells for $20.How many days of labor should the firm hire?

Accepted Answer

A)   3
B)   4
C)   5
D)   6E) B) and C)
F) All of the above

Question 10

Table 18-7
Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a competitive, profit-maximizing firm. Harold's production function is detailed in the table below.
 
-Refer to Table 18-7.If Harold pays his workers $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the second worker?

Accepted Answer

A)   $80
B)   $400
C)   $6,400
D)   $32,000E) A) and C)
F) C) and D)

Question 11

Table 18-6
 
-Refer to Table 18-6.What is the value of the cell labeled II?

Accepted Answer

A)   -$100
B)   $100
C)   $200
D)   $300E) A) and B)
F) A) and C)

Question 12

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) B) and C)
F) B) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The value of the marginal product is

Accepted Answer

A)   total revenue minus total cost.
B)   the change in total output divided by the change in an input.
C)   the marginal product of an input times the price of the output.
D)   total output divided by total inputs.E) A) and D)
F) A) and C)

Question 15

For profit-maximizing,competitive firms,the demand curve for each factor of production equals the value of the marginal product of that factor.

Accepted Answer

A) True 
 B)False

Question 16

Movements of workers from country to country can cause shifts in the labor supply curves for both countries.

Accepted Answer

A) True 
 B)False

Question 17

Figure 18-10
 
-Refer to Figure 18-10.Which of the following would shift of the labor demand curve from D₁ to D₂?

Accepted Answer

A)   a change in workers' attitudes toward the work-leisure tradeoff
B)   decreases in wages in other labor markets
C)   an increase in the price of firms' output
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 18

Table 18-10
Consider the following daily production data for Caroline's Cookies, Inc. Caroline's sells cookies for $2.50 each and pays the workers a wage of $325 per day.
 
-Refer to Table 18-10.What is the fifth worker's marginal product of labor?

Accepted Answer

A)   120 cookies
B)   140 cookies
C)   160 cookies
D)   180 cookiesE) C) and D)
F) B) and D)

Question 19

For competitive firms,the curve that represents the value of marginal product of labor is the same as the demand for labor curve.

Accepted Answer

A) True 
 B)False

Question 20

The demand for computer programmers is inseparably tied to the supply of computer software.

Accepted Answer

A) True 
 B)False

Exam 18: The Market For the Factors of Production.

The value of the marginal product is

Correct Answer
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For profit-maximizing,competitive firms,the demand curve for each factor of production equals the value of the marginal product of that factor.

Correct Answer
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Which of the following would be an example of capital for a computer software firm? (i) the firm's computer programmers (ii) the wages the firm pays to its computer programmers (iii) computer equipment

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

Correct Answer
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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 Answer
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Which of the following is not an example of a factor of production?

Correct Answer
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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 sells its output for $20 per unit,and it pays each of its workers $1,250 per week.The firm maximizes profit by hiring

Correct Answer
verified

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

Correct Answer
verified

Table 18-10 Consider the following daily production data for Caroline's Cookies, Inc. Caroline's sells cookies for $2.50 each and pays the workers a wage of $325 per day. -Refer to Table 18-10.What is the fifth worker's marginal product of labor?

Correct Answer
verified

Movements of workers from country to country can cause shifts in the labor supply curves for both countries.

Correct Answer
verified

Table 18-1 -Refer to Table 18-1.Suppose that the firm pays its workers $50 per day.Each unit of output sells for $20.How many days of labor should the firm hire?

Correct Answer
verified

The demand for computer programmers is inseparably tied to the supply of computer software.

Correct Answer
verified

John owns a number of hot dog stands in New York City.He hires workers to sell hot dogs at his stands.Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Correct Answer
verified

Correct Answer
verified

Table 18-6 -Refer to Table 18-6.What is the value of the cell labeled II?

Correct Answer
verified

For competitive firms,the curve that represents the value of marginal product of labor is the same as the demand for labor curve.

Correct Answer
verified

Table 18-9 -Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Correct Answer
verified

Figure 18-10 -Refer to Figure 18-10.Which of the following would shift of the labor demand curve from D₁ to D₂?

Correct Answer
verified

As a result of a fire,a small business owner loses some of her computers and other equipment.If the property of diminishing returns applies to all factors of production,she should expect to see

Correct Answer
verified

Exam 18: The Market For the Factors of Production.

The value of the marginal product is

Correct AnswerverifiedShow Answer

For profit-maximizing,competitive firms,the demand curve for each factor of production equals the value of the marginal product of that factor.

Correct AnswerverifiedShow Answer

Which of the following would be an example of capital for a computer software firm? (i) the firm's computer programmers (ii) the wages the firm pays to its computer programmers (iii) computer equipment

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

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

Which of the following is not an example of a factor of production?

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 sells its output for $20 per unit,and it pays each of its workers $1,250 per week.The firm maximizes profit by hiring

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 18-10 Consider the following daily production data for Caroline's Cookies, Inc. Caroline's sells cookies for $2.50 each and pays the workers a wage of $325 per day. -Refer to Table 18-10.What is the fifth worker's marginal product of labor?

Correct AnswerverifiedShow Answer

Movements of workers from country to country can cause shifts in the labor supply curves for both countries.

Correct AnswerverifiedShow Answer

Table 18-1 -Refer to Table 18-1.Suppose that the firm pays its workers $50 per day.Each unit of output sells for $20.How many days of labor should the firm hire?

Correct AnswerverifiedShow Answer

The demand for computer programmers is inseparably tied to the supply of computer software.

Correct AnswerverifiedShow Answer

John owns a number of hot dog stands in New York City.He hires workers to sell hot dogs at his stands.Which of the following events will lead to a decrease in John's demand for hot dog vendors?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 18-6 -Refer to Table 18-6.What is the value of the cell labeled II?

Correct AnswerverifiedShow Answer

For competitive firms,the curve that represents the value of marginal product of labor is the same as the demand for labor curve.

Correct AnswerverifiedShow Answer

Table 18-9 -Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Correct AnswerverifiedShow Answer

Figure 18-10 -Refer to Figure 18-10.Which of the following would shift of the labor demand curve from D₁ to D₂?

Correct AnswerverifiedShow Answer

As a result of a fire,a small business owner loses some of her computers and other equipment.If the property of diminishing returns applies to all factors of production,she should expect to see

Correct AnswerverifiedShow Answer

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