Exam 11: Markets for Factors of Production

A truck driver getting paid more than a school teacher is due to ________.

In Oettinger's paper studying the labor supply decisions of stadium vendors,he considered the following complication.For games played on weekends,for games played in good weather,and for games where the Rangers' opponent was popular and/or enjoying on-field success,the potential to earn more during the game increased,but all other vendors realized this as well.In essence,a vendor might actually make less during a "high total revenue potential" game if lots of other vendors decided to work that game as well.The likelihood of finding that vendors were more likely to "participate" for high total revenue potential games ________ by accounting for the strategic behavior of other vendors.Explain your answer.

The following table shows the demand and supply of labor in the steel manufacturing industry. a)What is the equilibrium wage rate and employment level in the industry? Illustrate graphically. b)If the labor demand shifts to the right,without any change in the labor supply curve,what is likely to happen to the equilibrium wage and the employment level? Explain your answer with the help of a suitable diagram. c)If the labor supply curve shifts to the left,without any change in the labor demand curve,what is likely to happen to the equilibrium wage and employment level? Explain your answer with the help of a suitable diagram.

Which of the following is NOT an important feature of the labor market that may give rise to differences in wages across workers?

Land is ________.

Scenario: Victoria Corp. makes running shoes by employing a robotics technology that requires at most a few, but highly skilled, workers for monitoring and maintenance of the robots. Each robot costs $240,000. The table below shows the marginal product of capital (MPK) per month when the firm employs one worker versus when it employs two workers. Each pair of Victoria shoes sells for $150. -Refer to the scenario above.If the firm decides to employ two workers,and the wage for each worker is $40,000 per month,the firm's maximum profit is ________.

What is the difference between labor-saving technology and labor-complementary technology?

Which of the following is a likely reason for wage inequality between men and women?

If a technological change lowers the wage of unskilled workers,it is an example of ________ technological change.

The table below lists salary and "productivity" data for two Major League Baseball pitchers,Sandy Koufax and Clayton Kershaw.The players are not contemporaries; their careers were roughly a half-century apart.Nonetheless,each pitcher is/was considered the dominant pitcher of his era.Comparing productivity for Koufax's 1963 season to Kershaw's 2016 season,Koufax was more productive (in terms of wins,complete games,innings pitched and strikeouts),yet Kershaw's salary was 126 times Koufax's salary,adjusting for inflation.What is the most likely explanation for the salary differential between Koufax and Kershaw?

Refer to the scenario above.The increase in price of peaches will cause the labor ________ curve to shift to the ________.

Which of the following statements is true of the market for labor?

The following figure shows the value of the marginal product of labor curve for a perfectly competitive firm. -Refer to the figure above.If the profit-maximizing quantity of labor hired by the firm is 40 hours,the market wage rate must be ________.

If the marginal product of a worker is 10 units and each unit of the good is sold for $5,the value of the marginal product of the worker is ________.

The following figure depicts a specific firm's production with respect to the number of machine used. -Refer to the figure above.If the rental price of machines is $40 per day and the value of one unit of output is $20,how many machines should the firm rent to maximize profits?

Which of the following is likely to cause an increase in the wage rate and a fall in the employment level in a country?

The following table shows the output of chairs produced by a firm at different units of capital rented. The price per chair is $10. -Refer to the table above.If the price of a chair increases to $20 and the rental price of machines is $200 per day,how many machines should the firm rent to maximize profits?

Scenario: A small apple orchard operates in a perfectly competitive output market (the market for apples) and input or factor market (the market for apple pickers). The market price of apples is $1 per pound, and the market wage for apple pickers is $50 per day. See the following table. -Refer to the scenario above.In the table above,the marginal product of labor for the tenth worker is ________.

The value of the marginal product of labor is given by ________.

Although the marginal productivity of hair stylists has remained roughly constant since the 1960s,the real wages (wages adjusted for inflation)of hair stylists have increased significantly.Assume that the labor market for hair stylists and the market for hair-styling services are perfectly competitive.What best explains this finding? Explain your answer.