Question 1

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

Accepted Answer

The value of marginal product curve for

Question 2

The four factors of production that produce goods and services are

Accepted Answer

A)  labor, money, machinery, and land. 
B)  labor, capital, money, and entrepreneurship. 
C)  labor, capital, land, and entrepreneurship. 
D)  labor, investment capital, machinery, and land. 
E)  labor, stocks, money, and bonds. 
A)  labor, money, machinery, and land. 
B)  labor, capital, money, and entrepreneurship. 
C)  labor, capital, land, and entrepreneurship. 
D)  labor, investment capital, machinery, and land. 
E)  labor, stocks, money, and bonds.

Question 3

The value of marginal product of labor

Accepted Answer

A)  always increases as more labor is hired. 
B)  is constant as long as each worker is paid the same wage rate. 
C)  declines only if each worker is paid more than the previous worker. 
D)  at some point declines as more workers are hired. 
E)  at first decreases and then increases as more workers are hired. 
A)  always increases as more labor is hired. 
B)  is constant as long as each worker is paid the same wage rate. 
C)  declines only if each worker is paid more than the previous worker. 
D)  at some point declines as more workers are hired. 
E)  at first decreases and then increases as more workers are hired.

Question 4

The table below has the marginal product schedule for Nick's Pizza.
a.If pizza sells for $8 each,complete the last column of the table.
   
b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

Accepted Answer

@#IMG-DLM& 
a.The completed table is abo

Question 5

Suppose in Chicago,at the going wage rate of $16.00 an hour,the quantity of lifeguards demanded exceeds the quantity supplied by 13,000 lifeguards.As a result,

Accepted Answer

A)  there is a surplus of lifeguards in Chicago. 
B)  there is a shortage of lifeguards in Chicago. 
C)  the lifeguard labor market is in equilibrium in Chicago. 
D)  wage rates will probably fall in this market. 
E)  the demand for labor of lifeguards in Chicago will decrease. 
A)  there is a surplus of lifeguards in Chicago. 
B)  there is a shortage of lifeguards in Chicago. 
C)  the lifeguard labor market is in equilibrium in Chicago. 
D)  wage rates will probably fall in this market. 
E)  the demand for labor of lifeguards in Chicago will decrease.

Question 6

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

Accepted Answer

A)  an increase in technology 
B)  a decrease in technology 
C)  a decrease in the number of women in the work force 
D)  an increase in the adult population 
E)  an increase in the wage rate 
A)  an increase in technology 
B)  a decrease in technology 
C)  a decrease in the number of women in the work force 
D)  an increase in the adult population 
E)  an increase in the wage rate

Question 7

The more people who remain in school for full-time education and training,the ________ is the ________ low-skilled labor.

Accepted Answer

A)  smaller; demand for 
B)  smaller; supply of 
C)  larger; supply of 
D)  larger; demand for 
E)  less elastic; demand for 
A)  smaller; demand for 
B)  smaller; supply of 
C)  larger; supply of 
D)  larger; demand for 
E)  less elastic; demand for

Question 8

Which of the following represents a derived demand? Demand for

Accepted Answer

A)  a taco by Sam when she is hungry. 
B)  golf balls by Jose, who is planning on going golfing with his boss. 
C)  a grocery clerk by the local Safeway. 
D)  an automobile by Jack, who wants a car to get to school. 
E)  new clothing by Shaniq, who is starting a new job. 
A)  a taco by Sam when she is hungry. 
B)  golf balls by Jose, who is planning on going golfing with his boss. 
C)  a grocery clerk by the local Safeway. 
D)  an automobile by Jack, who wants a car to get to school. 
E)  new clothing by Shaniq, who is starting a new job.

Question 9

The table below has the marginal product schedule for a firm.If the price of the product is $2 a unit,complete the table.If the wage rate is $8 an hour,how many workers does the firm hire?

Accepted Answer

@#IMG-DLM& If the wage rate is $8 an hou

Question 10

Oil is an example of

Accepted Answer

A)  a nonrenewable natural resource. 
B)  a renewable natural resource. 
C)  physical capital. 
D)  a resource for which the true value cannot be measured. 
E)  a resource with a perfectly inelastic demand. 
A)  a nonrenewable natural resource. 
B)  a renewable natural resource. 
C)  physical capital. 
D)  a resource for which the true value cannot be measured. 
E)  a resource with a perfectly inelastic demand.

Question 11

The demand curve for labor is the same as the firm's

Accepted Answer

A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve. 
A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve.

Question 12

The table has the marginal products for workers at Bart's Bats, a baseball bat factory.
-Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

Accepted Answer

A)  $40. 
B)  $0.625. 
C)  $1.375. 
D)  5 bats. 
E)  None of the above answers is correct. 
A)  $40. 
B)  $0.625. 
C)  $1.375. 
D)  5 bats. 
E)  None of the above answers is correct.

Question 13

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $10 per hour and the price per pizza is $10.The marginal product of the third worker is

Accepted Answer

A)  5 pizzas per hour. 
B)  17 pizzas per hour. 
C)  $220 per hour. 
D)  7 1/3 pizzas per hour. 
E)  None of the above answers is correct. 
A)  5 pizzas per hour. 
B)  17 pizzas per hour. 
C)  $220 per hour. 
D)  7 1/3 pizzas per hour. 
E)  None of the above answers is correct.

Question 14

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

Accepted Answer

A)  demand for land. 
B)  quantity demanded of land. 
C)  supply of land. 
D)  elasticity of supply for land. 
E)  quantity supplied of land. 
A)  demand for land. 
B)  quantity demanded of land. 
C)  supply of land. 
D)  elasticity of supply for land. 
E)  quantity supplied of land.

Question 15

-The above figure represents the market for professional minor-league baseball umpires.
a.If umpires are offered $90 a game,what is the quantity of umpires supplied?
b.If umpires are offered $90 a game,is there a surplus or shortage of games umpired? What does the shortage or surplus equal?
c.What is the equilibrium wage rate and quantity of umpires?

Accepted Answer

a.The quantity of umpires supplied is 20

Question 16

The four factors of production that produce goods and services are

Accepted Answer

A)  labor, capital, profits, and entrepreneurship. 
B)  money, labor, rent, and profit. 
C)  labor, capital, land, and entrepreneurship. 
D)  wages, interest, rent, and profit. 
E)  wages, prices, quantities, and employment. 
A)  labor, capital, profits, and entrepreneurship. 
B)  money, labor, rent, and profit. 
C)  labor, capital, land, and entrepreneurship. 
D)  wages, interest, rent, and profit. 
E)  wages, prices, quantities, and employment.

Question 17

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

Accepted Answer

A)  The firm is employing the profit-maximizing quantity of labor. 
B)  Too much labor is currently employed and the firm will lay off some workers. 
C)  Too few workers are currently employed and the firm will hire more workers. 
D)  The firm should shut down and produce nothing. 
E)  More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor. 
A)  The firm is employing the profit-maximizing quantity of labor. 
B)  Too much labor is currently employed and the firm will lay off some workers. 
C)  Too few workers are currently employed and the firm will hire more workers. 
D)  The firm should shut down and produce nothing. 
E)  More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.

Question 18

What factors other than the wage rate influence the demand for labor? How is demand affected by changes in these factors?

Accepted Answer

The demand for labor is influenced by ch

Question 19

A natural resource is renewable if it

Accepted Answer

A)  never has to rest. 
B)  can be used repeatedly. 
C)  cannot be replaced once it has been used. 
D)  is available at a price of zero. 
E)  has a perfectly elastic supply. 
A)  never has to rest. 
B)  can be used repeatedly. 
C)  cannot be replaced once it has been used. 
D)  is available at a price of zero. 
E)  has a perfectly elastic supply.

Question 20

The supply of labor curve for nurses shifts if

Accepted Answer

A)  the wage rate paid nurses increases. 
B)  there is an increase in the time spent in nursing school. 
C)  the value of marginal product of nurses increases. 
D)  the value of marginal product of nurses decreases. 
E)  the marginal product of nurses decreases. 
A)  the wage rate paid nurses increases. 
B)  there is an increase in the time spent in nursing school. 
C)  the value of marginal product of nurses increases. 
D)  the value of marginal product of nurses decreases. 
E)  the marginal product of nurses decreases.

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

The four factors of production that produce goods and services are

The value of marginal product of labor

The table below has the marginal product schedule for Nick's Pizza. a.If pizza sells for $8 each,complete the last column of the table. b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

Suppose in Chicago,at the going wage rate of $16.00 an hour,the quantity of lifeguards demanded exceeds the quantity supplied by 13,000 lifeguards.As a result,

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

The more people who remain in school for full-time education and training,the is the low-skilled labor.

Which of the following represents a derived demand? Demand for

The table below has the marginal product schedule for a firm.If the price of the product is $2 a unit,complete the table.If the wage rate is $8 an hour,how many workers does the firm hire?

Oil is an example of

The demand curve for labor is the same as the firm's

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $10 per hour and the price per pizza is $10.The marginal product of the third worker is

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

The four factors of production that produce goods and services are

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

What factors other than the wage rate influence the demand for labor? How is demand affected by changes in these factors?

A natural resource is renewable if it

The supply of labor curve for nurses shifts if

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

Exam 19: Markets for Factors of Production

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

The four factors of production that produce goods and services are

The value of marginal product of labor

The table below has the marginal product schedule for Nick's Pizza. a.If pizza sells for $8 each,complete the last column of the table. b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

Suppose in Chicago,at the going wage rate of $16.00 an hour,the quantity of lifeguards demanded exceeds the quantity supplied by 13,000 lifeguards.As a result,

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

The more people who remain in school for full-time education and training,the ________ is the ________ low-skilled labor.

Which of the following represents a derived demand? Demand for

The table below has the marginal product schedule for a firm.If the price of the product is $2 a unit,complete the table.If the wage rate is $8 an hour,how many workers does the firm hire?

Oil is an example of

The demand curve for labor is the same as the firm's

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the price of a bat is $8,then the value of marginal product of labor of the fourth worker is

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $10 per hour and the price per pizza is $10.The marginal product of the third worker is

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

The four factors of production that produce goods and services are

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

What factors other than the wage rate influence the demand for labor? How is demand affected by changes in these factors?

A natural resource is renewable if it

The supply of labor curve for nurses shifts if

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

The more people who remain in school for full-time education and training,the is the low-skilled labor.