Exam 18: Markets for Factors of Production

Many autoworkers are unionized. Which of the following methods can help them achieve higher wages? I. Training that increases union members' marginal product II) A publicity campaign promoting purchase of union-made automobile

In order to change the demand for union labor, unions favor all of the following EXCEPT increasing

-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 and the wage rate is $37.50 per day, how many workers should Winnie employ to maximize his profit?

The demand for a product produced by a union becomes more elastic. After this change, how does an increase in the wage rate paid its members affect their employment?

John's reservation wage is $16 per hour. This means that

-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 $4 and the wage rate is $70 per day, how many workers should Winnie employ to maximize his profit?

If the interest rate is 4 percent, the present value of $10,000 to be received two years from today is about

With respect to labor supply, the substitution effect means a

-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?

An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states. What is going on in the rental market for land?

The marginal cost of labor, MCL, is defined as the

-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.

Which of the following is NOT a method by which unions try to increase the demand for the labor of their members?

If the supply of a factor is perfectly inelastic, then

When the price of the good or service it produces rises, the firm's

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

One reason unions might support an increase in the minimum wage is because such a policy would cause a leftward shift in the demand curve for union labor.

A monopsony pays a wage rate ________ the marginal cost of labor and ________ the value of marginal product of labor.

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

If the demand for dog grooming increases so that the price of dog grooming rises, then number of workers hired by Doug's Dog Grooming would