Exam 18: Markets for Factors of Production

-City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve. If a minimum wage law is passed that requires employers to pay at least $7 per hour, City-Mart will employ ________ hours of sales clerk labor per day.

-The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is $2.00 per pound. What is the value of marginal product from employing the third worker?

"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product equals the wage rate for chefs." Is the statement correct or incorrect?

Which of the following would explain why Josh's Limo Service might increase its demand for limo drivers?

-Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?

If a union can successfully shift the demand curve for union labor rightward, the union can achieve

-The figure above shows a labor market. If there is a monopsony in this labor market, employment is

Because of the income effect, the labor supply curve is

For a monopsony, the labor supply curve is

For many jobs, as wages increase, the quantity supplied of labor increases. This set of facts is evidence that the

A firm's value of marginal product of labor curve

Discuss the difference between renewable and nonrenewable resources. Given an example of each.

A bilateral monopoly is a

-The figure above shows the labor demand and labor supply curves for workers in local fast-food restaurants. The fast-food restaurant industry is competitive. A decrease in the supply of labor shifts the labor supply curve from LS₀ to LS₁. Fast-food restaurants hire ________ and total labor income earned by the fast-food workers ________.

The firm's demand for labor is derived directly from ________.

A worker supplies labor to the market if the

A rise in the minimum wage increases the demand for union labor because this policy change

The demand curve for labor is negatively sloped only because the firm must lower its price if it wishes to sell more output.

If the interest rate falls, the present value of $100 to be received in one year

St. Mary's Church has a balloon payment of $100,000 due on its mortgage in two years. If the interest rate is 8 percent, the present value of St. Mary's balloon mortgage payment is