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Exam 18: The Market for the Factors of Production

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Question 191

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Land,labor,and capital are examples of factors of production.

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B) False

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Question 192

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The theory of labor supply is based on the trade-off between __________.

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Question 193

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Which of the following would decrease the demand for labor? (i) A decrease in the output price (ii) An increase in the output price (iii) A labor-saving technological advance (iv) A labor-augmenting technological advance

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

Table 18-2 -Refer to Table 18-2.The following table shows the number of calculators that can be assembled per week by various numbers of workers.If the price per calculator in a perfectly competitive product market is $5,how many workers would the firm employ if the weekly wage rate is $400?

Using the theory of wage determination,explain why wages in developing countries,where levels of capital are small,are typically quite low.

Which of the following would shift a market labor supply curve to the left?

Consider the labor market for computer programmers.Because of the dot.com boom in the late 1990s,a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies.However,when these computer programming students graduated the dot.com bust took place.The dot.com bust decreased the value of the marginal product of computer programmers.Holding all else equal what effect did these two circumstances have on the equilibrium quantity in the labor market for computer programmers?

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

In the United States,technological advances help explain persistently rising employment in the face of rising wages.

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 the equilibrium wage

Table 18-4 -Refer to Table 18-4.How many workers should the firm hire?

Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks.What will happen in the labor market for bartenders?

Figure 18-3 -Refer to Figure 18-3.Suppose that the price of the output is $20.What is the value of the marginal product of the third worker?

Labor-augmenting technology causes which of the following? (i) The marginal productivity of labor increases. (ii) The marginal productivity of labor decreases. (iii) Labor demand shifts to the right. (iv) Labor demand shifts to the left.

The value of the marginal product of labor can be calculated as the price of the final good minus the marginal product of labor.

A competitive firm sells its output for $30 per unit.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

An increase in population can be expected to

The labor supply curve reflects how

Table 18-6 -Refer to Table 18-6.To maximize its profit,the firm will hire workers as long as the value of the marginal product of labor equals or exceeds