Exam 11: Markets for Factors of Production

Other things remaining the same,which of the following is likely to cause a decrease in both the wage rate and the number of workers hired in a glass factory?

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 $80 per day and the value of one unit of output is $20,how many machines should the firm rent to maximize profits?

Takashi,an Asian,and Sally,a Caucasian,apply for a job that requires math skills.Takashi gets a job,because the employer bases the decision on the idea that Asians are,on average,better at math than Caucasians.This is an example of ________.

Non-paying activities in economics are referred to as ________.

Scenario: This problem applies the principle of optimization covered in Chapter 5 to the problem of choosing how many hours to work. Paul has to decide how many hours to work per day. His boss is willing to give Paul whatever hours Paul wants up to 8 hours. All else being equal, he would rather not work, that is, Paul has positive marginal benefit from each hour of leisure. But he is an avid collector of presidential campaign buttons. The more leisure he takes, the fewer buttons he can afford. So Paul faces a trade-off between leisure and buttons. Each button costs $1.00. The table below shows Paul's marginal benefits from leisure (MBlₑᵢsᵤᵣₑ) and buttons (MBbᵤttₒn). -Refer to the scenario above.If the hourly wage is $1.00,what is the maximum possible number of buttons Paul can afford?

Without any change in the supply of labor,how will shifts in the demand for labor affect equilibrium wage and employment?

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 new apple-picking baskets increase the productivity of apple pickers,as noted in the following table.The new profit-maximizing number of workers to hire is ________.

Differentiate between taste-based discrimination and statistical discrimination.

The following figure depicts an individual's supply of labor. -Refer to the figure above.The substitution effect dominates the income effect only between ________.

Meryl works 10 hours a day in an hourly job that pays $15 per hour.Suppose her wage rate increases to a really high rate of $10,000 per hour.In this case,Meryl will ________.

The following figure depicts the labor markets of two different firms. -Refer to the figure above.If firm A wants to hire 6 employees and pay a wage of $6,what is the market price of its output?

Illustrate graphically how the following events are likely to affect the equilibrium wage and employment level in a leather factory. a)An increase in the population of the region where the factory is located,without any change in the demand for leather b)The establishment of a textile firm in close vicinity that offers higher daily wages than the leather factory offers

The decision rule for a profit-maximizing firm operating in a competitive market to hire an additional worker is that the value of the ________.

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.What is the profit-maximizing number of workers the orchard should hire?

Which of the following statements correctly identifies a difference between labor and land?

A compensating wage differential is a wage premium paid to ________.

Which of the following is an example of capital?

The cost of using a good for some specific period of time is called the ________ of the good.

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 $4 per hour?

Scenario: The following figure shows the labor market for farm workers who pick peaches in Georgia. Suppose that price of peaches suddenly increases. -Refer to the scenario above.Before the price of peaches increased,the equilibrium wage rate in this market was ________.