Question 1

A firm deciding how many hours to hire can be represented:

Accepted Answer

A)   with an individual labor-supply curve.
B)   in the market labor-supply curve.
C)   with an individual labor-demand curve.
D)   in the market labor-demand curve.E) A) and D)
F) A) and C)

Question 2

If Jay receives a pay cut and the price effect outweighs the income effect on his labor supply decisions,he will work:

Accepted Answer

A)   more hours.
B)   less hours.
C)   the same amount.
D)   zero hours.E) A) and D)
F) A) and C)

Question 3

Graphically,we can think of the marginal product of a factor as the:

Accepted Answer

A)   slope of the total production curve, when output is plotted against the quantity of the input that is used.
B)   slope of the total cost curve, when output is plotted against the costs of the quantity of the inputs used.
C)   additional cost associated with producing one more unit of output.
D)   additional inputs associated with producing one more unit of output.E) None of the above
F) B) and C)

Question 4

If the demand for pizza increases,then as a result,it is highly likely that the demand for:

Accepted Answer

A)   chicken nuggets will fall.
B)   soda will increase.
C)   mozzarella cheese will increase.
D)   All of these are a likely result.E) B) and D)
F) A) and D)

Question 5

Holding other things constant,diminishing marginal productivity happens to:

Accepted Answer

A)   any input, the more the input is hired.
B)   labor, the more labor is hired, but not to land or capital.
C)   capital inputs, the more is hired, but not to labor or land.
D)   all inputs with the exception of land, the more those inputs are hired.E) All of the above
F) A) and D)

Question 6

If the graph shown is displaying a competitive labor market:

Accepted Answer

A)   Q* would represent total employment in the market.
B)   S would represent the workers' willingness to supply labor at every wage.
C)   P* would represent the equilibrium wage.
D)   All of these statements are true.E) None of the above
F) All of the above

Question 7

A "capitalist" is someone who:

Accepted Answer

A)   owns stock.
B)   holds a treasury bond.
C)   opens a retirement account.
D)   All of these statements are true.E) None of the above
F) B) and D)

Question 8

All of the following are examples of human capital except:

Accepted Answer

A)   physical strength.
B)   an eye for decorating and color.
C)   a PhD in chemistry.
D)   an automotive manual.E) A) and D)
F) None of the above

Question 9

The marginal product of any input into the production process is the:

Accepted Answer

A)   increase in output that is generated by an additional unit of input.
B)   decrease in input that is generated by an additional unit of output.
C)   constant ratio of inputs to outputs.
D)   ratio total output divided by total quantity.E) B) and C)
F) A) and B)

Question 10

When the U.S.decides to strengthen its border control,the labor market in California is affected.We would expect the:

Accepted Answer

A)   demand for labor to decrease.
B)   supply of labor to decrease.
C)   demand of labor to increase.
D)   supply of labor to increase.E) A) and D)
F) A) and C)

Question 11

Graphing the value of marginal product against the quantity of a given input hired looks like which of the following curves?

Accepted Answer

A)   The total product curve
B)   The total revenue curve
C)   The demand curve
D)   The value product curveE) B) and C)
F) A) and D)

Question 12

Human capital is defined as the:

Accepted Answer

A)   amount of capital that is operated by workers in a firm.
B)   amount of capital that is operated by workers in an industry.
C)   amount of workers a firm employs.
D)   set of skills, knowledge, experience, and talent that determine the productivity of workers.E) B) and C)
F) C) and D)

Question 13

Wes works as a delivery man and can work as many hours as he likes for $12 an hour.He typically works 40 hours a week.Recently,his pay has been cut,and Wes decides to work:

Accepted Answer

A)   more hours, because the price effect dominates his labor supply decision.
B)   less hours, because the income effect dominates his labor supply decision.
C)   more hours, because the income effect dominates his labor supply decision.
D)   the same amount, because the price effect dominates his labor supply decision.E) None of the above
F) A) and B)

Question 14

In general in the real world labor market the:

Accepted Answer

A)   price effect usually dominates, and thus we assume a downward sloping supply curve.
B)   income effect usually dominates, and thus we assume a downward sloping supply curve.
C)   price effect usually dominates, and thus we assume an upward sloping supply curve.
D)   income effect usually dominates, and thus we assume an upward sloping supply curve.E) All of the above
F) A) and B)

Question 15

Which of the following would be considered a "leisure" activity by economists?

Accepted Answer

A)   Driving an on-duty taxi.
B)   Driving to the movies.
C)   Driving a forklift for work.
D)   Driving a bus for a city.E) B) and D)
F) B) and C)

Question 16

All of the following are true of the labor-supply and labor-demand curves intersection except they:

Accepted Answer

A)   only intersect once.
B)   intersect at the equilibrium wage.
C)   intersect at the profit-maximizing quantity for the firms in the market.
D)   intersect at the revenue-maximizing quantity for the firms in the market.E) C) and D)
F) All of the above

Question 17

All of the following are examples of human capital except:

Accepted Answer

A)   the ability to write clearly.
B)   knowledge of word processing programs.
C)   the ability to coordinate labor effectively.
D)   a computer which has top-of-the-line word processing software.E) C) and D)
F) A) and D)

Question 18

An individual labor-demand curve represents:

Accepted Answer

A)   a worker's decisions around how many hours to work at each alternative wage.
B)   the decisions of all workers around how many hours to work at each alternative wage.
C)   a firm's decisions around how many hours to hire at each alternative wage.
D)   the decisions of all firms around how many hours to work at each alternative wage.E) A) and D)
F) A) and B)

Question 19

In a competitive labor market,if the supply of labor increases,wages will:

Accepted Answer

A)   increase.
B)   decrease.
C)   remain the same.
D)   drop to zero.E) A) and B)
F) A) and D)

Question 20

The market labor-supply curve is:

Accepted Answer

A)   upward sloping.
B)   downward sloping.
C)   perfectly elastic.
D)   perfectly inelastic.E) A) and C)
F) A) and B)

Exam 16: The Factors of Production

Which of the following would be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

All of the following are true of the labor-supply and labor-demand curves intersection except they:

Correct AnswerverifiedShow Answer

All of the following are examples of human capital except:

Correct AnswerverifiedShow Answer

Wes works as a delivery man and can work as many hours as he likes for $12 an hour.He typically works 40 hours a week.Recently,his pay has been cut,and Wes decides to work:

Correct AnswerverifiedShow Answer

A "capitalist" is someone who:

Correct AnswerverifiedShow Answer

Graphically,we can think of the marginal product of a factor as the:

Correct AnswerverifiedShow Answer

If Jay receives a pay cut and the price effect outweighs the income effect on his labor supply decisions,he will work:

Correct AnswerverifiedShow Answer

If the demand for pizza increases,then as a result,it is highly likely that the demand for:

Correct AnswerverifiedShow Answer

The market labor-supply curve is:

Correct AnswerverifiedShow Answer

When the U.S.decides to strengthen its border control,the labor market in California is affected.We would expect the:

Correct AnswerverifiedShow Answer

If the graph shown is displaying a competitive labor market:

Correct AnswerverifiedShow Answer

The marginal product of any input into the production process is the:

Correct AnswerverifiedShow Answer

Graphing the value of marginal product against the quantity of a given input hired looks like which of the following curves?

Correct AnswerverifiedShow Answer

In a competitive labor market,if the supply of labor increases,wages will:

Correct AnswerverifiedShow Answer

In general in the real world labor market the:

Correct AnswerverifiedShow Answer

An individual labor-demand curve represents:

Correct AnswerverifiedShow Answer

Holding other things constant,diminishing marginal productivity happens to:

Correct AnswerverifiedShow Answer

All of the following are examples of human capital except:

Correct AnswerverifiedShow Answer

A firm deciding how many hours to hire can be represented:

Correct AnswerverifiedShow Answer

Human capital is defined as the:

Correct AnswerverifiedShow 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

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