Exam 11: Factor Markets

Which one of the following statements is FALSE?

Use the labor supply and labor demand graph to show the impact of the following three events on the equilibrium wage and equilibrium number of workers hired. In each case, mark the original equilibrium as point A and the new equilibrium as point B. a. an increase in the price of the good that labor produces b. an increase in the rate of immigration that increases the labor force c. an increase in the productivity of workers that results from technological advancements

Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If hiring 40 workers per hour maximizes the firm's profit, then the market wage is _____ per hour. ​ Figure: Marginal Revenue Product and Labor Demand

If an increase in the minimum wage above the equilibrium wage does not lead to any additional unemployment and increases the wage of workers, then we know that the _____ curve for labor is perfectly _____.

All else equal, an increase in the productivity of workers in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

The demand for factors of production is referred to as a _____ demand.

Which one of the following statements is NOT true?

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

According to the law of diminishing returns, all else equal, an increase in the number of workers leads to:

Which of the following statements is FALSE?

A change in the demographics of an economy such that there is an increase in the workers of retiring age will, all else equal, lead to _____ in the equilibrium quantity of labor hired and _____ in the equilibrium wage rate.

Which one of the following does NOT fall in the category of factors of production?

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A? Figure: Equilibrium in the Labor Market

All else equal, a decrease in the overall price level of goods and services in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

All else equal, the effect of a decrease in the overall rate of immigration can be shown through a _____ shift of the labor _____ curve.

Which one of the following will lead to a rightward shift of the labor supply curve?

Each firm in a perfectly competitive labor market faces a _____ labor _____ curve.

The marginal product of labor refers to the extra:

With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _____ shift of the labor _____ curve.

Which of the following will lead to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate?