Question 1

If we compare the value of marginal product of labor curve and the demand for labor curve we see that

Accepted Answer

A)  they are the same thing. 
B)  the value of marginal product curve is twice as steep. 
C)  the demand for labor curve has no relationship to the value of marginal product curve. 
D)  the demand for labor curve is twice as steep but they share the same axes. 
E)  the demand for labor curve lies above the value of marginal product curve. 
A)  they are the same thing. 
B)  the value of marginal product curve is twice as steep. 
C)  the demand for labor curve has no relationship to the value of marginal product curve. 
D)  the demand for labor curve is twice as steep but they share the same axes. 
E)  the demand for labor curve lies above the value of marginal product curve.

Question 2

The demand curve for labor is the same as the firm's

Accepted Answer

A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve. 
A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve.

Question 3

The demand for a nonrenewable resource is

Accepted Answer

A)  determined by the value of its marginal product. 
B)  fixed and cannot change. 
C)  perfectly inelastic. 
D)  perfectly elastic. 
E)  not defined because the resource can be used only once. 
A)  determined by the value of its marginal product. 
B)  fixed and cannot change. 
C)  perfectly inelastic. 
D)  perfectly elastic. 
E)  not defined because the resource can be used only once.

Question 4

The supply of land is perfectly ________ because no matter the amount of rent offered for land,the quantity of land is ________.

Accepted Answer

A)  elastic; fixed 
B)  inelastic; fixed 
C)  elastic: renewable 
D)  inelastic; nonrenewable 
E)  elastic; nonrenewable 
A)  elastic; fixed 
B)  inelastic; fixed 
C)  elastic: renewable 
D)  inelastic; nonrenewable 
E)  elastic; nonrenewable

Question 5

How does a firm's demand for labor change if the price of the firm's product increases? Relate your answer to the value of marginal product.

Accepted Answer

An increase in the price of the firm's p

Question 6

Which of the following is true?

Accepted Answer

A)  The value to a firm of hiring another worker is the worker's value of marginal product. 
B)  A firm will hire more workers if the wage rate is greater than the value of marginal product. 
C)  The value of marginal product is the cost of hiring a worker. 
D)  The value of marginal product increases as more workers are hired. 
E)  The value of marginal product equals the price of the good produced divided by the marginal product. 
A)  The value to a firm of hiring another worker is the worker's value of marginal product. 
B)  A firm will hire more workers if the wage rate is greater than the value of marginal product. 
C)  The value of marginal product is the cost of hiring a worker. 
D)  The value of marginal product increases as more workers are hired. 
E)  The value of marginal product equals the price of the good produced divided by the marginal product.

Question 7

If UPS hires another worker,UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

Accepted Answer

A)  $5. 
B)  $100. 
C)  $4. 
D)  20 packages. 
E)  $20. 
A)  $5. 
B)  $100. 
C)  $4. 
D)  20 packages. 
E)  $20.

Question 8

If the demand for a good increases,the demand for the factors used to produce the good

Accepted Answer

A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  could increase, decrease, or stay the same depending on whether the demand for the good is elastic, inelastic, or unit elastic. 
E)  None of the above answers is correct. 
A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  could increase, decrease, or stay the same depending on whether the demand for the good is elastic, inelastic, or unit elastic. 
E)  None of the above answers is correct.

Question 9

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

Accepted Answer

The supply of low-skilled labor decrease

Question 10

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

Accepted Answer

Three factors shift the demand for labor

Question 11

Why is the supply of an nonrenewable natural resource perfectly elastic?

Accepted Answer

The supply of an nonrenewable natural re

Question 12

Which of the following is true about the market for capital?

Accepted Answer

A)  The demand for capital curve is upward sloping and the supply of capital curve is downward sloping. 
B)  The supply of capital is perfectly elastic. 
C)  The supply of capital curve is upward sloping and the demand for capital curve is downward sloping. 
D)  The supply of capital curve is vertical and the demand for capital curve is downward sloping. 
E)  None of the above answers is correct. 
A)  The demand for capital curve is upward sloping and the supply of capital curve is downward sloping. 
B)  The supply of capital is perfectly elastic. 
C)  The supply of capital curve is upward sloping and the demand for capital curve is downward sloping. 
D)  The supply of capital curve is vertical and the demand for capital curve is downward sloping. 
E)  None of the above answers is correct.

Question 13

What is meant by derived demand?

Accepted Answer

A)  The demand is derived from income, tastes, etc. of sellers. 
B)  The demand for a resource is derived from the demand for what it can produce. 
C)  The demand is derived from the price elasticity of demand. 
D)  The demand exists because the government mandates production of the good. 
E)  The demand for a good is derived from the supply of the good. 
A)  The demand is derived from income, tastes, etc. of sellers. 
B)  The demand for a resource is derived from the demand for what it can produce. 
C)  The demand is derived from the price elasticity of demand. 
D)  The demand exists because the government mandates production of the good. 
E)  The demand for a good is derived from the supply of the good.

Question 14

$$\begin{array} { c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { labor }
\end{array} & \begin{array} { c } 
\text { Total product } \
\text { (pizzas per hour) }
\end{array} \
\hline 0 & 0 \
1 & 10 \
2 & 17 \
3 & 22 \
4 & 24 \
5 & 25
\end{array}$$
-The table above shows the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $10 per hour and the price per pizza is $10.The marginal product of the third worker is

Accepted Answer

A)  5 pizzas per hour. 
B)  17 pizzas per hour. 
C)  $220 per hour. 
D)  7 1/3 pizzas per hour. 
E)  None of the above answers is correct. 
A)  5 pizzas per hour. 
B)  17 pizzas per hour. 
C)  $220 per hour. 
D)  7 1/3 pizzas per hour. 
E)  None of the above answers is correct.

Question 15

Which of the following is a method used by unions to increase the demand for their members' labor?

Accepted Answer

A)  Support import restrictions. 
B)  Decrease the marginal product of union members. 
C)  Increase imported goods and services 
D)  Oppose immigration restrictions. 
E)  Oppose minimum wage laws. 
A)  Support import restrictions. 
B)  Decrease the marginal product of union members. 
C)  Increase imported goods and services 
D)  Oppose immigration restrictions. 
E)  Oppose minimum wage laws.

Question 16

A worker has a marginal product of 15 units a day,each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

Accepted Answer

It is profitable to hire this worker bec

Question 17

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Accepted Answer

A)  will sell all its coal now. 
B)  will sell none of its coal now but will sell it all next year regardless of the price next year. 
C)  will sell none of its coal now but might sell it all next year. 
D)  will sell half of the coal today and half of it next year. 
E)  might or might not sell the coal today, depending on the price the firm paid for the coal. 
A)  will sell all its coal now. 
B)  will sell none of its coal now but will sell it all next year regardless of the price next year. 
C)  will sell none of its coal now but might sell it all next year. 
D)  will sell half of the coal today and half of it next year. 
E)  might or might not sell the coal today, depending on the price the firm paid for the coal.

Question 18

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

Accepted Answer

A worker might decrease the quantity of

Question 19

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { workers }
\end{array} & \begin{array} { c } 
\text { Marginal product } \
\text { (bats per hour) }
\end{array} \
\hline 1 & 8 \
\hline 2 & 7 \
\hline 3 & 6 \
\hline 4 & 5 \
\hline 5 & 4 \
\hline
\end{array}$$ 
The table has the marginal products for workers at Bart's Bats, a baseball bat factory.
-Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

Accepted Answer

A)  $40. 
B)  $0.625. 
C)  $1.375. 
D)  5 bats. 
E)  None of the above answers is correct. 
A)  $40. 
B)  $0.625. 
C)  $1.375. 
D)  5 bats. 
E)  None of the above answers is correct.

Question 20

In the market for land,an increase in demand ________ the equilibrium rent of land and ________ the equilibrium quantity.

Accepted Answer

A)  raises; does not change 
B)  lowers; increases 
C)  raises; increases 
D)  does not change; increases 
E)  does not change; does not change 
A)  raises; does not change 
B)  lowers; increases 
C)  raises; increases 
D)  does not change; increases 
E)  does not change; does not change

If we compare the value of marginal product of labor curve and the demand for labor curve we see that

The demand curve for labor is the same as the firm's

The demand for a nonrenewable resource is

The supply of land is perfectly because no matter the amount of rent offered for land,the quantity of land is .

How does a firm's demand for labor change if the price of the firm's product increases? Relate your answer to the value of marginal product.

Which of the following is true?

If UPS hires another worker,UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

If the demand for a good increases,the demand for the factors used to produce the good

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

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

Why is the supply of an nonrenewable natural resource perfectly elastic?

Which of the following is true about the market for capital?

What is meant by derived demand?

Which of the following is a method used by unions to increase the demand for their members' labor?

A worker has a marginal product of 15 units a day,each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

Number of workers Marginal product (bats per hour) 1 8 2 7 3 6 4 5 5 4 The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

In the market for land,an increase in demand the equilibrium rent of land and the equilibrium quantity.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

Exam 19: Markets for Factors of Production

If we compare the value of marginal product of labor curve and the demand for labor curve we see that

The demand curve for labor is the same as the firm's

The demand for a nonrenewable resource is

The supply of land is perfectly ________ because no matter the amount of rent offered for land,the quantity of land is ________.

How does a firm's demand for labor change if the price of the firm's product increases? Relate your answer to the value of marginal product.

Which of the following is true?

If UPS hires another worker,UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

If the demand for a good increases,the demand for the factors used to produce the good

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

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

Why is the supply of an nonrenewable natural resource perfectly elastic?

Which of the following is true about the market for capital?

What is meant by derived demand?

Which of the following is a method used by unions to increase the demand for their members' labor?

A worker has a marginal product of 15 units a day,each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.

Number of workers Marginal product (bats per hour) 1 8 2 7 3 6 4 5 5 4 The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

In the market for land,an increase in demand ________ the equilibrium rent of land and ________ the equilibrium quantity.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

The supply of land is perfectly because no matter the amount of rent offered for land,the quantity of land is .

In the market for land,an increase in demand the equilibrium rent of land and the equilibrium quantity.