Exam 18: Markets for Factors of Production

An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately

According to a 1963 edition of the Effingham Daily News, Illinois Consolidated Telephone Co. switched from the switchboard system to the dial system at 12:01 a.m. Sunday, Aug. 18, 1963. Thirty miles of cable supported the new high-tech system. It took four weeks to lay the telephone lines that allowed Effingham residents to directly connect to each other through the telephone. How does the switch from the switchboard system to the dial system impact the labor market for switchboard operators?

With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income.

Coal is an example of

Discounting is the process whereby

Why does the labor supply curve eventually bend backwards?

What factors shift the demand for labor curve? Briefly describe the effect of each.

An increase in the interest rate

Discounting is converting a future amount of money to a present value.

Which of the following would unions be most likely to support?

The existence of a union

Land is an example of a renewable resource.

A firm that can sell its output for $40 per unit. When it increases its labor force from 4 workers to 5 workers its output increases from 15 to 17 units. The value of marginal product of the 5th worker is

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the 4th worker?

Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop because he can't find enough workers to harvest it. Though his tomato pickers made an average of $16.59 per hour last year, he said the relatively high wage is not enough to attract local labor to work the fields. In the market for tomato workers, what is true?

If a firm finds that, at its current level of employment, VMP < W, then it has

If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate, then the supply today will

The price of an nonrenewable resource is expected to rise at a rate equal to the

An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the

-The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point