Question 1

As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well.

Accepted Answer

A) True 
 B)False

Question 2

How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?

Accepted Answer

Increased immigration increase...

Question 3

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see the marginal productivity of her remaining land

Accepted Answer

A)   increase.
B)   remain unchanged.
C)   decrease but remain positive.
D)   decrease and become negative.E) A) and D)
F) C) and D)

Question 4

Table 18-6 
-Refer to Table 18-6. What is the value for the cell labeled CC?

Accepted Answer

A)   650
B)   600
C)   100
D)   50E) None of the above
F) C) and D)

Question 5

The labor supply curve reflects how

Accepted Answer

A)   workers' decisions about the labor-leisure tradeoff respond to a change in the wage.
B)   workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied.
C)   firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded.
D)   firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.E) A) and C)
F) A) and B)

Question 6

Figure 18-7 
-Refer to Figure 18-7. Assume W1 = $20 and W2 = $18, and the market is always in equilibrium. A shift of the labor supply curve from S1 to S2 would

Accepted Answer

A)   increase the value of the marginal product of labor by $2.
B)   decrease the value of the marginal product of labor by $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) C) and D)
F) B) and C)

Question 7

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 $25 per unit, and it pays each of its workers $1,000 per week. Also, the firm's non­labor costs are fixed and they amount to $2,000. The firm maximizes profit by hiring

Accepted Answer

A)   2 workers.
B)   3 workers.
C)   4 workers.
D)   5 workers.E) None of the above
F) A) and D)

Question 8

The wage is to the labor market as the

Accepted Answer

A)   rental price of capital is to the capital market.
B)   purchase price of capital is to the capital market.
C)   supply of land is to the land market.
D)   demand for land is to the land market.E) B) and C)
F) A) and D)

Question 9

If the demand for labor in a particular industry increases, the equilibrium wage in that industry will also increase.

Accepted Answer

A) True 
 B)False

Question 10

When a competitive firm produces output up to the point at which the price is equal to marginal cost, it also hires labor up to the point at which the wage is equal to the

Accepted Answer

A)   marginal cost of labor.
B)   marginal profit of labor.
C)   marginal product of labor.
D)   value of the marginal product of labor.E) A) and B)
F) A) and C)

Question 11

Which of the following statements is correct?

Accepted Answer

A)   The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
B)   The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
C)   The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
D)   Both a and b are correct.E) A) and D)
F) None of the above

Question 12

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) All of the above
F) A) and B)

Question 13

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 $15 per unit, and it pays each of its workers $750 per week. When output increases from 210 units to 285 units, the

Accepted Answer

A)   marginal cost is $10 per unit of output.
B)   marginal revenue is $5 per unit of output.
C)   value of the marginal product of labor is $4,275
D)   firm's profit decreases.E) A) and D)
F) B) and C)

Question 14

Does history suggest that most technological progress is labor-saving or labor-augmenting?

Accepted Answer

History suggests tha...

Question 15

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   It is not possible to determine what will happen to the equilibrium quantity.E) None of the above
F) All of the above

Question 16

An increase in the demand for houses

Accepted Answer

A)   increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
B)   increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
C)   decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
D)   decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.E) A) and D)
F) B) and C)

Question 17

Figure 18-6 
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the bakery profession becomes less attractive to young women and men because of news reports documenting health risks, what happens in the market for bakers?

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) B) and C)
F) All of the above

Question 18

Figure 18-6 
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers increase, what happens in the market for bread bakers?

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) None of the above
F) B) and D)

Question 19

From 1960 to 2010, inflation-adjusted wages increased by 87 percent in the U.S. As a result, firms reduced the amount of labor they employed by nearly 15 percent.

Accepted Answer

A) True 
 B)False

Question 20

The marginal product of labor is the

Accepted Answer

A)   marginal revenue product minus the wage paid to the worker.
B)   total amount of output divided by the total units of labor.
C)   increase in the amount of output from an additional unit of labor.
D)   None of the above is correct.E) A) and D)
F) None of the above

Exam 18: The Markets for the Factors of Production

How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?

Correct Answer
verified
Increased immigration increase...
View Answer

Which of the following statements is correct?

Correct Answer
verified

Does history suggest that most technological progress is labor-saving or labor-augmenting?

Correct Answer
verified
History suggests tha...
View Answer

When a competitive firm produces output up to the point at which the price is equal to marginal cost, it also hires labor up to the point at which the wage is equal to the

Correct Answer
verified

Figure 18-6 -Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers increase, what happens in the market for bread bakers?

Correct Answer
verified

Correct Answer
verified

The marginal product of labor is the

Correct Answer
verified

The labor supply curve shifts when

Correct Answer
verified

From 1960 to 2010, inflation-adjusted wages increased by 87 percent in the U.S. As a result, firms reduced the amount of labor they employed by nearly 15 percent.

Correct Answer
verified

The wage is to the labor market as the

Correct Answer
verified

The labor supply curve reflects how

Correct Answer
verified

Figure 18-6 -Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the bakery profession becomes less attractive to young women and men because of news reports documenting health risks, what happens in the market for bakers?

Correct Answer
verified

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 $15 per unit, and it pays each of its workers $750 per week. When output increases from 210 units to 285 units, the

Correct Answer
verified

Table 18-6 -Refer to Table 18-6. What is the value for the cell labeled CC?

Correct Answer
verified

Figure 18-7 -Refer to Figure 18-7. Assume W1 = $20 and W2 = $18, and the market is always in equilibrium. A shift of the labor supply curve from S1 to S2 would

Correct Answer
verified

As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well.

Correct Answer
verified

If the demand for labor in a particular industry increases, the equilibrium wage in that industry will also increase.

Correct Answer
verified

An increase in the demand for houses

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Exam 18: The Markets for the Factors of Production

How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?

Correct AnswerverifiedIncreased immigration increase...View AnswerShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Does history suggest that most technological progress is labor-saving or labor-augmenting?

Correct AnswerverifiedHistory suggests tha...View AnswerShow Answer

When a competitive firm produces output up to the point at which the price is equal to marginal cost, it also hires labor up to the point at which the wage is equal to the

Correct AnswerverifiedShow Answer

Figure 18-6 -Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers increase, what happens in the market for bread bakers?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The marginal product of labor is the

Correct AnswerverifiedShow Answer

The labor supply curve shifts when

Correct AnswerverifiedShow Answer

From 1960 to 2010, inflation-adjusted wages increased by 87 percent in the U.S. As a result, firms reduced the amount of labor they employed by nearly 15 percent.

Correct AnswerverifiedShow Answer

The wage is to the labor market as the

Correct AnswerverifiedShow Answer

The labor supply curve reflects how

Correct AnswerverifiedShow Answer

Figure 18-6 -Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the bakery profession becomes less attractive to young women and men because of news reports documenting health risks, what happens in the market for bakers?

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 $15 per unit, and it pays each of its workers $750 per week. When output increases from 210 units to 285 units, the

Correct AnswerverifiedShow Answer

Table 18-6 -Refer to Table 18-6. What is the value for the cell labeled CC?

Correct AnswerverifiedShow Answer

Figure 18-7 -Refer to Figure 18-7. Assume W1 = $20 and W2 = $18, and the market is always in equilibrium. A shift of the labor supply curve from S1 to S2 would

Correct AnswerverifiedShow Answer

As the number of concrete workers in the United States falls, the wage paid to the remaining concrete workers will necessarily fall as well.

Correct AnswerverifiedShow Answer

If the demand for labor in a particular industry increases, the equilibrium wage in that industry will also increase.

Correct AnswerverifiedShow Answer

An increase in the demand for houses

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Increased immigration increase...
View Answer

Correct Answer
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Correct Answer
verified
History suggests tha...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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