Question 1

When expectations cause people to discriminate against a certain group,it is referred to as ________.

Accepted Answer

A)  preferential bias 
B)  cultural discrimination 
C)  statistical discrimination 
D)  taste-based discrimination 
A)  preferential bias 
B)  cultural discrimination 
C)  statistical discrimination 
D)  taste-based discrimination

Question 2

The following table shows the hours of labor supplied by six workers at different wage rates.
   
a)If the market for labor consists of only these six workers,calculate the market supply of labor at the different wage rates.
b)If the market demand for labor is 56 hours per day,what is the equilibrium wage rate?
c)If the market demand for labor is 38 hours per day,what is the equilibrium wage rate?

Accepted Answer

a) The market supply curve of labor is d

Question 3

Which of the following is likely to cause a rightward shift in the labor supply curve?

Accepted Answer

A)  An increase in population 
B)  A decrease in population 
C)  An increase in the price of the final good that the workers produce 
D)  A decrease in the price of the final good that the workers produce 
A)  An increase in population 
B)  A decrease in population 
C)  An increase in the price of the final good that the workers produce 
D)  A decrease in the price of the final good that the workers produce

Question 4

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,how many robots should it use?

Accepted Answer

A)  None 
B)  1 
C)  2 
D)  3 
A)  None 
B)  1 
C)  2 
D)  3

Question 5

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

Accepted Answer

A)  value of the output produced by all the workers in a firm 
B)  contribution of an additional unit of labor to a firm's revenue 
C)  extra output that is produced by hiring an additional unit of labor 
D)  amount of output produced by the first unit of labor hired by a firm 
A)  value of the output produced by all the workers in a firm 
B)  contribution of an additional unit of labor to a firm's revenue 
C)  extra output that is produced by hiring an additional unit of labor 
D)  amount of output produced by the first unit of labor hired by a firm

Question 6

In the case of leisure,the substitution effect implies that ________.

Accepted Answer

A)  when the price of leisure increases, people will work more 
B)  when the price of leisure increases, people will work less and relax more 
C)  if people tend to work more and relax less, the price of leisure increases 
D)  if people tend to work more and relax less, the price of leisure decreases 
A)  when the price of leisure increases, people will work more 
B)  when the price of leisure increases, people will work less and relax more 
C)  if people tend to work more and relax less, the price of leisure increases 
D)  if people tend to work more and relax less, the price of leisure decreases

Question 7

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

Accepted Answer

A)  $ 0.5 
B)  $ 1 
C)  $ 2 
D)  $ 3 
A)  $ 0.5 
B)  $ 1 
C)  $ 2 
D)  $ 3

Question 8

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

Accepted Answer

A)  Land can be owned or rented by a firm, whereas capital cannot be owned. 
B)  Capital can be owned or rented by a firm, whereas land cannot be owned. 
C)  Land is created, whereas capital is a naturally occurring resource. 
D)  Capital is created, whereas land is a naturally occurring resource. 
A)  Land can be owned or rented by a firm, whereas capital cannot be owned. 
B)  Capital can be owned or rented by a firm, whereas land cannot be owned. 
C)  Land is created, whereas capital is a naturally occurring resource. 
D)  Capital is created, whereas land is a naturally occurring resource.

Question 9

The firm's value of marginal product of labor schedule slopes downward due to declining ________.

Accepted Answer

A)  marginal revenue 
B)  marginal cost 
C)  product price 
D)  marginal product of labor 
A)  marginal revenue 
B)  marginal cost 
C)  product price 
D)  marginal product of labor

Question 10

If workers are optimizing their total benefit,they will consume leisure until their ________.

Accepted Answer

A)  marginal product of labor equals their wage 
B)  value of marginal product of labor equals their wage 
C)  marginal cost of leisure equals their wage 
D)  marginal benefit of leisure equals their wage 
A)  marginal product of labor equals their wage 
B)  value of marginal product of labor equals their wage 
C)  marginal cost of leisure equals their wage 
D)  marginal benefit of leisure equals their wage

Question 11

Scenario: The labor market in Delaware is depicted in the following figure. Suppose 10,000 out-of-state workers move to Delaware.
  
-Refer to the scenario above.After this migration,the wage rate in Delaware will equal ________.

Accepted Answer

A)  $6 
B)  $7 
C)  $8 
D)  $6.50 
A)  $6 
B)  $7 
C)  $8 
D)  $6.50

Question 12

Which of the following is likely to lead to a leftward shift in the demand curve for labor in the petroleum extraction industry?

Accepted Answer

A)  An increase in the wage rate 
B)  A decrease in the wage rate 
C)  An increase in the price of cars 
D)  An increase in the price of petroleum 
A)  An increase in the wage rate 
B)  A decrease in the wage rate 
C)  An increase in the price of cars 
D)  An increase in the price of petroleum

Question 13

A skill-biased technological change is likely to ________.

Accepted Answer

A)  increase the wage of skilled labor 
B)  increase the wage of unskilled labor 
C)  decrease the demand for skilled labor 
D)  increase the marginal productivity of unskilled labor 
A)  increase the wage of skilled labor 
B)  increase the wage of unskilled labor 
C)  decrease the demand for skilled labor 
D)  increase the marginal productivity of unskilled labor

Question 14

Scenario: Mark grows herbs in his backyard. The following table shows his output as a function of the square feet of land used.
  
-Refer to the scenario above.What is the marginal product of land when the third square foot of land is used?

Accepted Answer

A)  8 
B)  9 
C)  10 
D)  12 
A)  8 
B)  9 
C)  10 
D)  12

Question 15

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 $120 per day and the value of one unit of output is $20,how many machines should the firm rent to maximize profits?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 16

Which of the following is likely to cause flour mills to increase their demand for labor?

Accepted Answer

A)  a decrease in the wage rate 
B)  an increase in the wage rate 
C)  an increase in the price of bread 
D)  a decrease in the price of flour products 
A)  a decrease in the wage rate 
B)  an increase in the wage rate 
C)  an increase in the price of bread 
D)  a decrease in the price of flour products

Question 17

Discrimination that occurs when people's preferences cause them to discriminate against a certain group is referred to as ________.

Accepted Answer

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

Question 18

If a firm pays married women less than other individuals with the same human capital (e.g.,the same productivity),this is an example of ________.

Accepted Answer

A)  compensating wage differential 
B)  taste-based discrimination 
C)  statistical discrimination 
D)  none of the above 
A)  compensating wage differential 
B)  taste-based discrimination 
C)  statistical discrimination 
D)  none of the above

Question 19

Which of the following is likely to lead to a rightward shift in the supply curve of labor in an industry?

Accepted Answer

A)  The introduction of labor-saving technology 
B)  A decrease in the opportunity cost of leisure 
C)  An increase in the number of immigrants from foreign countries 
D)  The introduction of labor-complementary technology 
A)  The introduction of labor-saving technology 
B)  A decrease in the opportunity cost of leisure 
C)  An increase in the number of immigrants from foreign countries 
D)  The introduction of labor-complementary technology

Question 20

Which of the following is likely to lead to a leftward shift in the supply curve of labor to a firm?

Accepted Answer

A)  The introduction of labor-saving technology 
B)  The establishment of a new firm nearby that offers higher wages 
C)  An increase in the opportunity cost of leisure 
D)  The introduction of labor-complementary technology 
A)  The introduction of labor-saving technology 
B)  The establishment of a new firm nearby that offers higher wages 
C)  An increase in the opportunity cost of leisure 
D)  The introduction of labor-complementary technology

When expectations cause people to discriminate against a certain group,it is referred to as ________.

Which of the following is likely to cause a rightward shift in the labor supply curve?

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

In the case of leisure,the substitution effect implies that ________.

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

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

The firm's value of marginal product of labor schedule slopes downward due to declining ________.

If workers are optimizing their total benefit,they will consume leisure until their ________.

Scenario: The labor market in Delaware is depicted in the following figure. Suppose 10,000 out-of-state workers move to Delaware. -Refer to the scenario above.After this migration,the wage rate in Delaware will equal ________.

Which of the following is likely to lead to a leftward shift in the demand curve for labor in the petroleum extraction industry?

A skill-biased technological change is likely to ________.

Scenario: Mark grows herbs in his backyard. The following table shows his output as a function of the square feet of land used. -Refer to the scenario above.What is the marginal product of land when the third square foot of land is used?

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 $120 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 flour mills to increase their demand for labor?

Discrimination that occurs when people's preferences cause them to discriminate against a certain group is referred to as ________.

If a firm pays married women less than other individuals with the same human capital (e.g.,the same productivity),this is an example of ________.

Which of the following is likely to lead to a rightward shift in the supply curve of labor in an industry?

Which of the following is likely to lead to a leftward shift in the supply curve of labor to a firm?

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

When expectations cause people to discriminate against a certain group,it is referred to as ________.

Which of the following is likely to cause a rightward shift in the labor supply curve?

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

In the case of leisure,the substitution effect implies that ________.

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

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

The firm's value of marginal product of labor schedule slopes downward due to declining ________.

If workers are optimizing their total benefit,they will consume leisure until their ________.

Scenario: The labor market in Delaware is depicted in the following figure. Suppose 10,000 out-of-state workers move to Delaware. -Refer to the scenario above.After this migration,the wage rate in Delaware will equal ________.

Which of the following is likely to lead to a leftward shift in the demand curve for labor in the petroleum extraction industry?

A skill-biased technological change is likely to ________.

Scenario: Mark grows herbs in his backyard. The following table shows his output as a function of the square feet of land used. -Refer to the scenario above.What is the marginal product of land when the third square foot of land is used?

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 $120 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 flour mills to increase their demand for labor?

Discrimination that occurs when people's preferences cause them to discriminate against a certain group is referred to as ________.

If a firm pays married women less than other individuals with the same human capital (e.g.,the same productivity),this is an example of ________.

Which of the following is likely to lead to a rightward shift in the supply curve of labor in an industry?

Which of the following is likely to lead to a leftward shift in the supply curve of labor to a firm?

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