Question 1

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

Accepted Answer

A)  increasing.
B)  constant.
C)  decreasing.
D)  negative.E) All of the above
F) A) and C)

Question 2

What is the relationship between the marginal product of labor and the value of the marginal product of labor?

Accepted Answer

The value of the marginal prod...

Question 3

The value of the marginal product of labor is equal to the change in

Accepted Answer

A)  marginal cost caused by the addition of the last worker.
B)  total cost caused by the addition of the last worker.
C)  total revenue caused by the addition of the last worker.
D)  total profit caused by the addition of the last worker.E) C) and D)
F) None of the above

Question 4

A monopsony firm in a labor market hires fewer workers than would a competitive firm.

Accepted Answer

A) True 
 B)False

Question 5

Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor?

Accepted Answer

The increase in fema...

Question 6

The accumulation of machinery and buildings used in the production of new goods and services is referred to as

Accepted Answer

A)  production factors.
B)  output factors.
C)  capital.
D)  equity.E) None of the above
F) All of the above

Question 7

Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour.

Accepted Answer

A) True 
 B)False

Question 8

For a profit-maximizing, competitive firm, the value of the marginal product of labor

Accepted Answer

A)  increases when the price of output decreases.
B)  is the firm's demand for labor.
C)  equals the marginal product of labor divided by the wage rate.
D)  All of the above are correct.E) B) and C)
F) None of the above

Question 9

Scenario 18-2
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-2. If the price of fresh Pacific salmon were to decrease significantly, it is most likely that Gertrude would

Accepted Answer

A)  reduce her demand for crew members.
B)  hire more boats.
C)  become a seller in at least one factor market.
D)  hire more crew members.E) B) and C)
F) None of the above

Question 10

Immigration of workers into the United States is often an important source of

Accepted Answer

A)  increases in the demand for labor in the United States.
B)  decreases in the demand for labor in the United States.
C)  increases in the supply of labor in the United States.
D)  decreases in the supply of labor in the United States.E) A) and D)
F) A) and B)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Figure 18-9 
-Refer to Figure 18-9. If the price of apples decreases, the

Accepted Answer

A)  demand for apple pickers will shift to the left.
B)  demand for apple pickers will shift to the right.
C)  supply of apple pickers will shift to the left.
D)  supply of apple pickers will shift to the right.E) All of the above
F) A) and C)

Question 13

Scenario 18-2
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-2. In the fresh Pacific salmon product market, Gertrude has some control over the

Accepted Answer

A)  price she charges for her fresh salmon.
B)  quantity of fresh salmon that she supplies to the market.
C)  competitive environment of the market.
D)  supply of labor in the market.E) All of the above
F) None of the above

Question 14

How does technological advance affect the demand for labor?

Accepted Answer

Technological advance typicall...

Question 15

Suppose that the market for labor is initially in equilibrium. A decrease in the price of output will cause the equilibrium wage

Accepted Answer

A)  and the equilibrium quantity of labor to rise.
B)  and the equilibrium quantity of labor to fall.
C)  to rise and the equilibrium quantity of labor to fall.
D)  to fall and the equilibrium quantity of labor to rise.E) B) and C)
F) All of the above

Question 16

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

Accepted Answer

A)  an increase in the wage paid to workers in a competing market
B)  labor-saving technology
C)  a change in worker tastes so that workers want to retire later
D)  an increase in immigrationE) B) and C)
F) C) and D)

Question 17

The labor supply curve shifts when

Accepted Answer

A)  employers need to hire more people.
B)  employers develop new technology.
C)  workers change the number of hours that they want to work at any given wage.
D)  workers become more productive.E) A) and B)
F) B) and C)

Question 18

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

Question 19

When a labor market experiences a surplus of labor, there is downward pressure on

Accepted Answer

A)  the supply of labor.
B)  the final product price.
C)  wages.
D)  the demand for labor.E) B) and C)
F) All of the above

Question 20

Among the people who are characterized below, who has the highest opportunity cost of leisure?

Accepted Answer

A)  a veterinarian who earns $25 per hour and who goes surfing during her leisure time
B)  a professional tennis player who earns $50 per hour giving tennis lessons and who watches TV during his leisure time
C)  a retail clerk who earns $15 per hour and who plays computer games during his leisure time
D)  a CPA who earns $150 per hour and who golfs during her leisure timeE) B) and C)
F) All of the above

Exam 18: The Markets for the Factors of Production

Among the people who are characterized below, who has the highest opportunity cost of leisure?

Correct Answer
verified

The accumulation of machinery and buildings used in the production of new goods and services is referred to as

Correct Answer
verified

The value of the marginal product of labor is equal to the change in

Correct Answer
verified

Correct Answer
verified

Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor?

Correct Answer
verified
The increase in fema...
View Answer

Suppose that the market for labor is initially in equilibrium. A decrease in the price of output will cause the equilibrium wage

Correct Answer
verified

A monopsony firm in a labor market hires fewer workers than would a competitive firm.

Correct Answer
verified

Figure 18-9 -Refer to Figure 18-9. If the price of apples decreases, the

Correct Answer
verified

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

Correct Answer
verified

How does technological advance affect the demand for labor?

Correct Answer
verified
Technological advance typicall...
View Answer

When a labor market experiences a surplus of labor, there is downward pressure on

Correct Answer
verified

For a profit-maximizing, competitive firm, the value of the marginal product of labor

Correct Answer
verified

Immigration of workers into the United States is often an important source of

Correct Answer
verified

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

Correct Answer
verified

The labor supply curve shifts when

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

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

Correct Answer
verified

Correct Answer
verified

Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour.

Correct Answer
verified

What is the relationship between the marginal product of labor and the value of the marginal product of labor?

Correct Answer
verified
The value of the marginal prod...
View Answer

Exam 18: The Markets for the Factors of Production

Among the people who are characterized below, who has the highest opportunity cost of leisure?

Correct AnswerverifiedShow Answer

The accumulation of machinery and buildings used in the production of new goods and services is referred to as

Correct AnswerverifiedShow Answer

The value of the marginal product of labor is equal to the change in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor?

Correct AnswerverifiedThe increase in fema...View AnswerShow Answer

Suppose that the market for labor is initially in equilibrium. A decrease in the price of output will cause the equilibrium wage

Correct AnswerverifiedShow Answer

A monopsony firm in a labor market hires fewer workers than would a competitive firm.

Correct AnswerverifiedShow Answer

Figure 18-9 -Refer to Figure 18-9. If the price of apples decreases, the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does technological advance affect the demand for labor?

Correct AnswerverifiedTechnological advance typicall...View AnswerShow Answer

When a labor market experiences a surplus of labor, there is downward pressure on

Correct AnswerverifiedShow Answer

For a profit-maximizing, competitive firm, the value of the marginal product of labor

Correct AnswerverifiedShow Answer

Immigration of workers into the United States is often an important source of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The labor supply curve shifts when

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

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour.

Correct AnswerverifiedShow Answer

What is the relationship between the marginal product of labor and the value of the marginal product of labor?

Correct AnswerverifiedThe value of the marginal prod...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The increase in fema...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Technological advance typicall...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The value of the marginal prod...
View Answer