Question 1

A constraint on union effectiveness is

Accepted Answer

A) the downward-sloping labour demand curve. 
B) the minimum wage law. 
C) the Fair Labour Standards Practices Act. 
D) increasing export competitiveness. 
E) the competition of other unions. 
A) the downward-sloping labour demand curve. 
B) the minimum wage law. 
C) the Fair Labour Standards Practices Act. 
D) increasing export competitiveness. 
E) the competition of other unions.

Question 2

Tim is opening a new online store.He is considering buying or leasing some new computers.The purchase price of a computer is $900 and after three years it is worthless.The annual cost of leasing a computer is $450.The price of capital equipment is ________.The rental rate of capital is ________.

Accepted Answer

A) $900;$450 
B) $450;$450 
C) $900;$900 
D) $450;$900 
E) 100 percent;50 percent 
A) $900;$450 
B) $450;$450 
C) $900;$900 
D) $450;$900 
E) 100 percent;50 percent

Question 3

Use the figure below to answer the following questions.   Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.Suppose the government passes a minimum wage law that prohibits anyone from hiring labour at less than $12.50 per hour.The monopsonist will hire

Accepted Answer

A) 50 hours of labour. 
B) 75 hours of labour. 
C) 62.5 hours of labour. 
D) 100 hours of labour. 
E) 125 hours of labour. 
A) 50 hours of labour. 
B) 75 hours of labour. 
C) 62.5 hours of labour. 
D) 100 hours of labour. 
E) 125 hours of labour.

Question 4

The supply of a nonrenewable natural resource is determined by all of the following factors except

Accepted Answer

A) the value of marginal product. 
B) the known reserves of the natural resource. 
C) the scale of current production facilities. 
D) the expected future price. 
E) the marginal cost of extraction. 
A) the value of marginal product. 
B) the known reserves of the natural resource. 
C) the scale of current production facilities. 
D) the expected future price. 
E) the marginal cost of extraction.

Question 5

During the past year,Teddy had a part-time job at which he is willing to work 30 hours each week.During Teddy's annual review,his boss grants him an 8 percent increase in his wage.As a result of the wage increase,Teddy is now willing to work 25 hours each week.Teddy's opportunity cost of ________ has risen and for Teddy the substitution effect of the wage hike is ________ the income effect.

Accepted Answer

A) leisure;less than 
B) leisure;more than 
C) labour;less than 
D) labour;more than 
E) leisure;equal to 
A) leisure;less than 
B) leisure;more than 
C) labour;less than 
D) labour;more than 
E) leisure;equal to

Question 6

The four factors of production are

Accepted Answer

A) productive factors,neutral factors,entrepreneurial factors,and nonproductive factors. 
B) men,women,animals,and capital. 
C) labour,capital,entrepreneurship,and land. 
D) machines,factories,buildings,and farms. 
E) labour,money,profits,and land. 
A) productive factors,neutral factors,entrepreneurial factors,and nonproductive factors. 
B) men,women,animals,and capital. 
C) labour,capital,entrepreneurship,and land. 
D) machines,factories,buildings,and farms. 
E) labour,money,profits,and land.

Question 7

Use the figure below to answer the following questions.   Figure 17.3.1
-Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is controlled by a monopsony,the wage rate is

Accepted Answer

A) $13 an hour. 
B) $12.50 an hour. 
C) $12 an hour. 
D) $11 an hour. 
E) zero,because the market would shut down. 
A) $13 an hour. 
B) $12.50 an hour. 
C) $12 an hour. 
D) $11 an hour. 
E) zero,because the market would shut down.

Question 8

The demand curve for labour will shift rightward as a result of

Accepted Answer

A) a decrease in the price of the firm's output. 
B) an increase in the wage rate. 
C) a decrease in the price of a substitute factor of production. 
D) an increase in the price of a substitute factor of production. 
E) a decrease in the wage rate. 
A) a decrease in the price of the firm's output. 
B) an increase in the wage rate. 
C) a decrease in the price of a substitute factor of production. 
D) an increase in the price of a substitute factor of production. 
E) a decrease in the wage rate.

Question 9

To maximize profit,a firm hires labour until

Accepted Answer

A) there is no more labour available at the market wage rate. 
B) they can sell that labour for no more than what they paid for it. 
C) the wage rate paid to the labour equals the marginal cost of production. 
D) the additional benefit from hiring the labour is equal to the additional revenue the labour generates. 
E) the value of marginal product equals the wage rate. 
A) there is no more labour available at the market wage rate. 
B) they can sell that labour for no more than what they paid for it. 
C) the wage rate paid to the labour equals the marginal cost of production. 
D) the additional benefit from hiring the labour is equal to the additional revenue the labour generates. 
E) the value of marginal product equals the wage rate.

Question 10

If the market for a nonrenewable natural resource is currently in equilibrium,the price of the resource

Accepted Answer

A) is determined only by the value of marginal product of the resource. 
B) is expected to rise at a rate equal to the interest rate. 
C) is expected to fall at a rate equal to the interest rate. 
D) will actually rise at a rate equal to the interest rate. 
E) will actually fall at a rate equal to the interest rate. 
A) is determined only by the value of marginal product of the resource. 
B) is expected to rise at a rate equal to the interest rate. 
C) is expected to fall at a rate equal to the interest rate. 
D) will actually rise at a rate equal to the interest rate. 
E) will actually fall at a rate equal to the interest rate.

Question 11

Use the table below to answer the following questions.
Table 17.2.1
  
-Refer to Table 17.2.1.If the firm can sell all the output it wants for the price of $5 a unit,what is the profit-maximizing number of workers if the wage rate is $30?

Accepted Answer

A) 1 
B) 3 
C) 5 
D) 6 
E) 7 
A) 1 
B) 3 
C) 5 
D) 6 
E) 7

Question 12

Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm

Accepted Answer

A) increases the wage rate. 
B) decreases the wage rate. 
C) increases the quantity of labour it hires. 
D) decreases the quantity of labour it hires. 
E) shuts down. 
A) increases the wage rate. 
B) decreases the wage rate. 
C) increases the quantity of labour it hires. 
D) decreases the quantity of labour it hires. 
E) shuts down.

Question 13

Given that r is the rate of interest,the present value of a dollar to be received a year from today equals

Accepted Answer

A) $1 × r. 
B) $1 ÷ (1 - r). 
C) $1 × (1 + r). 
D) $1 ÷ r. 
E) $1 ÷ (1 + r). 
A) $1 × r. 
B) $1 ÷ (1 - r). 
C) $1 × (1 + r). 
D) $1 ÷ r. 
E) $1 ÷ (1 + r).

Question 14

To maximize profit,the firm must equate the

Accepted Answer

A) wage rate to the price of the good. 
B) wage rate to the marginal product of labour. 
C) value of marginal product to the factor price. 
D) marginal factor cost to the price of the output. 
E) marginal cost of the factor to the marginal product of the factor. 
A) wage rate to the price of the good. 
B) wage rate to the marginal product of labour. 
C) value of marginal product to the factor price. 
D) marginal factor cost to the price of the output. 
E) marginal cost of the factor to the marginal product of the factor.

Question 15

If the annual rate of interest is 10 percent per year,what is the present value of $100 received one year from now?

Accepted Answer

A) $90.00 
B) $90.91 
C) $95.45 
D) $100.00 
E) $110.00 
A) $90.00 
B) $90.91 
C) $95.45 
D) $100.00 
E) $110.00

Question 16

If the interest rate is 10 percent per year,the present value of $100 in two years is

Accepted Answer

A) $80.00. 
B) $82.64. 
C) $90.91. 
D) $120.00. 
E) $121.00. 
A) $80.00. 
B) $82.64. 
C) $90.91. 
D) $120.00. 
E) $121.00.

Question 17

Use the table below to answer the following questions.
Table 17.2.3
  
-Emperor Spring Rolls produces spring rolls.The market for spring rolls is perfectly competitive,and the price of a spring roll is $3.50.The labour market is competitive,and the wage rate is $28 a day.Table 17.2.3 shows the workers' total product schedule.To maximize its profit,Emperor produces ________ spring rolls a day.

Accepted Answer

A) 32 
B) 44 
C) 54 
D) 62 
E) 66 
A) 32 
B) 44 
C) 54 
D) 62 
E) 66

Question 18

If the present value of $100 received one year from now is $80,what is the annual interest rate?

Accepted Answer

A) 8 percent 
B) 10 percent 
C) 20 percent 
D) 25 percent 
E) 50 percent 
A) 8 percent 
B) 10 percent 
C) 20 percent 
D) 25 percent 
E) 50 percent

Question 19

If the marginal product of a baker is 10 loaves of bread,and the price of a loaf of bread is $2,the baker's value of marginal product is

Accepted Answer

A) $2.00. 
B) $20.00. 
C) $0.20. 
D) $5.00. 
E) $12.00. 
A) $2.00. 
B) $20.00. 
C) $0.20. 
D) $5.00. 
E) $12.00.

Question 20

The supply of each particular block of land is

Accepted Answer

A) relatively elastic. 
B) relatively inelastic. 
C) perfectly elastic. 
D) perfectly inelastic. 
E) either elastic or inelastic depending on the productivity of the land. 
A) relatively elastic. 
B) relatively inelastic. 
C) perfectly elastic. 
D) perfectly inelastic. 
E) either elastic or inelastic depending on the productivity of the land.

A constraint on union effectiveness is

Tim is opening a new online store.He is considering buying or leasing some new computers.The purchase price of a computer is $900 and after three years it is worthless.The annual cost of leasing a computer is $450.The price of capital equipment is .The rental rate of capital is .

The supply of a nonrenewable natural resource is determined by all of the following factors except

The four factors of production are

Use the figure below to answer the following questions. Figure 17.3.1 -Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is controlled by a monopsony,the wage rate is

The demand curve for labour will shift rightward as a result of

To maximize profit,a firm hires labour until

If the market for a nonrenewable natural resource is currently in equilibrium,the price of the resource

Use the table below to answer the following questions. Table 17.2.1 -Refer to Table 17.2.1.If the firm can sell all the output it wants for the price of $5 a unit,what is the profit-maximizing number of workers if the wage rate is $30?

Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm

Given that r is the rate of interest,the present value of a dollar to be received a year from today equals

To maximize profit,the firm must equate the

If the annual rate of interest is 10 percent per year,what is the present value of $100 received one year from now?

If the interest rate is 10 percent per year,the present value of $100 in two years is

If the present value of $100 received one year from now is $80,what is the annual interest rate?

If the marginal product of a baker is 10 loaves of bread,and the price of a loaf of bread is $2,the baker's value of marginal product is

The supply of each particular block of land is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Economic Inequality

Filters

Exam 17: Markets for Factors of Production

A constraint on union effectiveness is

Tim is opening a new online store.He is considering buying or leasing some new computers.The purchase price of a computer is $900 and after three years it is worthless.The annual cost of leasing a computer is $450.The price of capital equipment is ________.The rental rate of capital is ________.

The supply of a nonrenewable natural resource is determined by all of the following factors except

The four factors of production are

Use the figure below to answer the following questions. Figure 17.3.1 -Refer to Figure 17.3.1.This figure shows the value of marginal product of labour curve,the labour supply curve,and the marginal cost of labour curve.If this labour market is controlled by a monopsony,the wage rate is

The demand curve for labour will shift rightward as a result of

To maximize profit,a firm hires labour until

If the market for a nonrenewable natural resource is currently in equilibrium,the price of the resource

Use the table below to answer the following questions. Table 17.2.1 -Refer to Table 17.2.1.If the firm can sell all the output it wants for the price of $5 a unit,what is the profit-maximizing number of workers if the wage rate is $30?

Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm

Given that r is the rate of interest,the present value of a dollar to be received a year from today equals

To maximize profit,the firm must equate the

If the annual rate of interest is 10 percent per year,what is the present value of $100 received one year from now?

If the interest rate is 10 percent per year,the present value of $100 in two years is

If the present value of $100 received one year from now is $80,what is the annual interest rate?

If the marginal product of a baker is 10 loaves of bread,and the price of a loaf of bread is $2,the baker's value of marginal product is

The supply of each particular block of land is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Economic Inequality

Filters

Tim is opening a new online store.He is considering buying or leasing some new computers.The purchase price of a computer is $900 and after three years it is worthless.The annual cost of leasing a computer is $450.The price of capital equipment is .The rental rate of capital is .