Question 1

Other things remaining the same,which of the following is likely to happen if an industry introduces labor-complementary technology in production?

Accepted Answer

A)  There will be a rise in both the wage rate and the employment level in the industry. 
B)  There will be a fall in both the wage rate and the employment level in the industry. 
C)  There will be a fall in the wage rate and a rise in the employment level in the industry. 
D)  There will be a rise in the wage rate and a fall in the employment level in the industry. 
A)  There will be a rise in both the wage rate and the employment level in the industry. 
B)  There will be a fall in both the wage rate and the employment level in the industry. 
C)  There will be a fall in the wage rate and a rise in the employment level in the industry. 
D)  There will be a rise in the wage rate and a fall in the employment level in the industry.

Question 2

Sandra has been working as a software engineer for five years,and Jack has been working as a software engineer for two years.Which of the following statements is true of Sandra and Jack?

Accepted Answer

A)  Sandra is likely to earn lower wages than Jack. 
B)  Sandra is likely to earn the same wage as Jack. 
C)  Sandra is likely to be more productive at work than Jack. 
D)  Sandra and Jack are likely to be equally productive at work. 
A)  Sandra is likely to earn lower wages than Jack. 
B)  Sandra is likely to earn the same wage as Jack. 
C)  Sandra is likely to be more productive at work than Jack. 
D)  Sandra and Jack are likely to be equally productive at work.

Question 3

The following figure shows the value of the marginal product of labor curve for a perfectly competitive firm.
  
-Refer to the figure above.What is the equilibrium quantity of labor hired by the firm when the wage rate is $6 per hour?

Accepted Answer

A)  10 hours 
B)  30 hours 
C)  60 hours 
D)  90 hours 
A)  10 hours 
B)  30 hours 
C)  60 hours 
D)  90 hours

Question 4

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.Now suppose that apple pickers have the same productivity as they did initially,but the price of apples rises to $1.25 per pound.The profit-maximizing number of workers the orchard should hire is ________.

Accepted Answer

A)  5 
B)  10 
C)  11 
D)  14 
A)  5 
B)  10 
C)  11 
D)  14

Question 5

If the marginal product of capital increases,the firm's ________.

Accepted Answer

A)  demand for capital will decrease 
B)  quantity demanded of capital will decrease 
C)  quantity demanded of capital will increase 
D)  demand for capital will increase 
A)  demand for capital will decrease 
B)  quantity demanded of capital will decrease 
C)  quantity demanded of capital will increase 
D)  demand for capital will increase

Question 6

If a firm's product price falls,________.

Accepted Answer

A)  demand for capital will decrease 
B)  quantity demanded of capital will decrease 
C)  quantity demanded of capital will increase 
D)  demand for capital will increase 
A)  demand for capital will decrease 
B)  quantity demanded of capital will decrease 
C)  quantity demanded of capital will increase 
D)  demand for capital will increase

Question 7

Refer to the scenario above.The increase in price of peaches will cause the equilibrium wage rate in this market to ________,and the employment to ________.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; decrease 
D)  decrease; increase 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; decrease 
D)  decrease; increase

Question 8

Which of the following would NOT cause the labor supply schedule to increase (shift right)?

Accepted Answer

A)  An increase in the working-age population 
B)  A significant reduction in child care costs 
C)  An increase in the firm's product price 
D)  An increase in women's tastes for working 
A)  An increase in the working-age population 
B)  A significant reduction in child care costs 
C)  An increase in the firm's product price 
D)  An increase in women's tastes for working

Question 9

Based on research conducted on the productivity of Hispanic and non-Hispanic workers,an employer decides to hire non-Hispanic workers.This is an example of ________.

Accepted Answer

A)  cultural discrimination 
B)  special interest group discrimination 
C)  statistical discrimination 
D)  taste-based discrimination 
A)  cultural discrimination 
B)  special interest group discrimination 
C)  statistical discrimination 
D)  taste-based discrimination

Question 10

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

Accepted Answer

A)  firm's marginal cost schedule 
B)  firm's marginal revenue schedule 
C)  firm's labor demand schedule 
D)  labor supply schedule facing the firm 
A)  firm's marginal cost schedule 
B)  firm's marginal revenue schedule 
C)  firm's labor demand schedule 
D)  labor supply schedule facing the firm

Question 11

Other things remaining the same,which of the following is likely to cause a leftward shift in the supply curve of labor?

Accepted Answer

A)  A decrease in population 
B)  An increase in population 
C)  A decrease in the demand for the final product that is produced by labor 
D)  An increase in the demand for the final product that is produced by labor 
A)  A decrease in population 
B)  An increase in population 
C)  A decrease in the demand for the final product that is produced by labor 
D)  An increase in the demand for the final product that is produced by labor

Question 12

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 decreases to $5 and the rental price of machines is $50 per day,how many machines should the firm rent?

Accepted Answer

A)  2 
B)  3 
C)  5 
D)  7 
A)  2 
B)  3 
C)  5 
D)  7

Question 13

Goods that are used for the production of other goods are referred to as ________.

Accepted Answer

A)  consumer durable goods 
B)  consumer capital 
C)  physical capital 
D)  public goods 
A)  consumer durable goods 
B)  consumer capital 
C)  physical capital 
D)  public goods

Question 14

A firm should hire physical capital until ________.

Accepted Answer

A)  the marginal product of capital equals the rental price of capital 
B)  the value of the marginal product of capital equals the rental price of capital 
C)  the firm's product price equals the rental price of capital 
D)  the wage paid to workers equals the rental price of capital 
A)  the marginal product of capital equals the rental price of capital 
B)  the value of the marginal product of capital equals the rental price of capital 
C)  the firm's product price equals the rental price of capital 
D)  the wage paid to workers equals the rental price of capital

Question 15

Which of the following statements is true?

Accepted Answer

A)  Firm-specific training results in losses to a worker. 
B)  Firm-specific training results in losses to a worker's employer. 
C)  A worker is more likely to pay for firm-specific training than for general training. 
D)  A worker is more likely to pay for general training than for firm-specific training. 
A)  Firm-specific training results in losses to a worker. 
B)  Firm-specific training results in losses to a worker's employer. 
C)  A worker is more likely to pay for firm-specific training than for general training. 
D)  A worker is more likely to pay for general training than for firm-specific training.

Question 16

Employers engaging in ________ are trying to enhance their profits.

Accepted Answer

A)  psychological bias 
B)  moral discrimination 
C)  statistical discrimination 
D)  taste-based discrimination 
A)  psychological bias 
B)  moral discrimination 
C)  statistical discrimination 
D)  taste-based discrimination

Question 17

The following figure shows the production function for a perfectly competitive firm.
  
-Refer to the figure above.The slope of the production function between ________ and ________ indicates negative returns to labor.

Accepted Answer

A)  Point B; Point C 
B)  Point A; Point C 
C)  Point A; Point B 
D)  the origin; Point A 
A)  Point B; Point C 
B)  Point A; Point C 
C)  Point A; Point B 
D)  the origin; Point A

Other things remaining the same,which of the following is likely to happen if an industry introduces labor-complementary technology in production?

Sandra has been working as a software engineer for five years,and Jack has been working as a software engineer for two years.Which of the following statements is true of Sandra and Jack?

The following figure shows the value of the marginal product of labor curve for a perfectly competitive firm. -Refer to the figure above.What is the equilibrium quantity of labor hired by the firm when the wage rate is $6 per hour?

If the marginal product of capital increases,the firm's ________.

If a firm's product price falls,________.

Refer to the scenario above.The increase in price of peaches will cause the equilibrium wage rate in this market to ,and the employment to .

Which of the following would NOT cause the labor supply schedule to increase (shift right)?

Based on research conducted on the productivity of Hispanic and non-Hispanic workers,an employer decides to hire non-Hispanic workers.This is an example of ________.

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

Other things remaining the same,which of the following is likely to cause a leftward shift in the supply curve of labor?

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 decreases to $5 and the rental price of machines is $50 per day,how many machines should the firm rent?

Goods that are used for the production of other goods are referred to as ________.

A firm should hire physical capital until ________.

Which of the following statements is true?

Employers engaging in ________ are trying to enhance their profits.

The following figure shows the production function for a perfectly competitive firm. -Refer to the figure above.The slope of the production function between and indicates negative returns to labor.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Exam 11: Markets for Factors of Production

Other things remaining the same,which of the following is likely to happen if an industry introduces labor-complementary technology in production?

Sandra has been working as a software engineer for five years,and Jack has been working as a software engineer for two years.Which of the following statements is true of Sandra and Jack?

The following figure shows the value of the marginal product of labor curve for a perfectly competitive firm. -Refer to the figure above.What is the equilibrium quantity of labor hired by the firm when the wage rate is $6 per hour?

If the marginal product of capital increases,the firm's ________.

If a firm's product price falls,________.

Refer to the scenario above.The increase in price of peaches will cause the equilibrium wage rate in this market to ________,and the employment to ________.

Which of the following would NOT cause the labor supply schedule to increase (shift right)?

Based on research conducted on the productivity of Hispanic and non-Hispanic workers,an employer decides to hire non-Hispanic workers.This is an example of ________.

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

Other things remaining the same,which of the following is likely to cause a leftward shift in the supply curve of labor?

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 decreases to $5 and the rental price of machines is $50 per day,how many machines should the firm rent?

Goods that are used for the production of other goods are referred to as ________.

A firm should hire physical capital until ________.

Which of the following statements is true?

Employers engaging in ________ are trying to enhance their profits.

The following figure shows the production function for a perfectly competitive firm. -Refer to the figure above.The slope of the production function between ________ and ________ indicates negative returns to labor.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Refer to the scenario above.The increase in price of peaches will cause the equilibrium wage rate in this market to ,and the employment to .

The following figure shows the production function for a perfectly competitive firm. -Refer to the figure above.The slope of the production function between and indicates negative returns to labor.