Question 1

If the wage rate increases,a firm's demand for labor curve

Accepted Answer

A)  does not shift, and there is no movement along it. 
B)  shifts leftward. 
C)  shifts rightward only if the elasticity of demand for labor is elastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the elasticity of demand for labor is inelastic. 
A)  does not shift, and there is no movement along it. 
B)  shifts leftward. 
C)  shifts rightward only if the elasticity of demand for labor is elastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the elasticity of demand for labor is inelastic.

Question 2

If the price of movie tickets increases,there is

Accepted Answer

A)  an increase in the demand for actors and actresses. 
B)  a decrease in the demand for actors and actresses. 
C)  no change in the demand for actors and actresses. 
D)  a decrease in the supply of actors and actresses. 
E)  an increase in the supply of actors and actresses. 
A)  an increase in the demand for actors and actresses. 
B)  a decrease in the demand for actors and actresses. 
C)  no change in the demand for actors and actresses. 
D)  a decrease in the supply of actors and actresses. 
E)  an increase in the supply of actors and actresses.

Question 3

The demand for labor curve of nurses shifts rightward if the

Accepted Answer

A)  value of marginal product of nurses increases. 
B)  wage rate paid to nurses rises. 
C)  supply of labor curve for nurses shifts leftward. 
D)  wage rate paid to nurses falls. 
E)  supply of labor curve for nurses shifts rightward. 
A)  value of marginal product of nurses increases. 
B)  wage rate paid to nurses rises. 
C)  supply of labor curve for nurses shifts leftward. 
D)  wage rate paid to nurses falls. 
E)  supply of labor curve for nurses shifts rightward.

Question 4

For a firm selling its product in a perfectly competitive market,the demand curve for a factor of production is downward sloping because

Accepted Answer

A)  of the diminishing marginal product of the factor. 
B)  to sell more output, the firm must lower the price of its product. 
C)  firms must hire more factors of production if they want to increase their output. 
D)  a factor's marginal product increases when the price of the factor increases. 
E)  None of the above answers is correct. 
A)  of the diminishing marginal product of the factor. 
B)  to sell more output, the firm must lower the price of its product. 
C)  firms must hire more factors of production if they want to increase their output. 
D)  a factor's marginal product increases when the price of the factor increases. 
E)  None of the above answers is correct.

Question 5

As the quantity of land used increases,its value of marginal product

Accepted Answer

A)  decreases and then eventually increases. 
B)  increases and then eventually decreases. 
C)  remains constant. 
D)  might increase, decrease, or remain constant depending if the rent for the land rises, falls, or does not change. 
E)  The premise of the question is wrong because land does not have a value of marginal product. 
A)  decreases and then eventually increases. 
B)  increases and then eventually decreases. 
C)  remains constant. 
D)  might increase, decrease, or remain constant depending if the rent for the land rises, falls, or does not change. 
E)  The premise of the question is wrong because land does not have a value of marginal product.

Question 6

What tools can unions use to increase the demand for union labor?

Accepted Answer

The main tools that unions use to increa

Question 7

The value of the marginal product of labor is calculated by multiplying the ________ by the ________.

Accepted Answer

A)  quantity of labor; wage rate 
B)  total product; wage rate 
C)  marginal product of labor; price of a unit of the output 
D)  wage rate; price of a unit of the output 
E)  marginal product of labor; wage rate 
A)  quantity of labor; wage rate 
B)  total product; wage rate 
C)  marginal product of labor; price of a unit of the output 
D)  wage rate; price of a unit of the output 
E)  marginal product of labor; wage rate

Question 8

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

Accepted Answer

A)  rise at a rate higher than the interest rate. 
B)  fall at a rate greater than the interest rate. 
C)  rise at a rate less than the interest rate. 
D)  rise at a rate equal to the interest rate. 
E)  fall at a rate equal to the interest rate. 
A)  rise at a rate higher than the interest rate. 
B)  fall at a rate greater than the interest rate. 
C)  rise at a rate less than the interest rate. 
D)  rise at a rate equal to the interest rate. 
E)  fall at a rate equal to the interest rate.

Question 9

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

Accepted Answer

A)  divided by 
B)  multiplied by 
C)  minus 
D)  plus 
E)  squared and then multiplied by 
A)  divided by 
B)  multiplied by 
C)  minus 
D)  plus 
E)  squared and then multiplied by

Question 10

The figure above shows a firm's VMP curve.
-Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Accepted Answer

A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question. 
A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question.

Question 11

Which rule does the United Corporation use when maximizing profit?

Accepted Answer

A)  Employ all resources until the value of their marginal products is equal. 
B)  If the value of the marginal product of labor exceeds the wage rate, hire fewer workers. 
C)  Hire labor up to point at which the value of marginal product of labor equals the wage rate. 
D)  Reduce the wage rate until it equals the marginal product of labor. 
E)  Hire labor up to point at which the value of marginal product of labor equals the price of the good or service the labor produces for United Corporation. 
A)  Employ all resources until the value of their marginal products is equal. 
B)  If the value of the marginal product of labor exceeds the wage rate, hire fewer workers. 
C)  Hire labor up to point at which the value of marginal product of labor equals the wage rate. 
D)  Reduce the wage rate until it equals the marginal product of labor. 
E)  Hire labor up to point at which the value of marginal product of labor equals the price of the good or service the labor produces for United Corporation.

Question 12

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

Accepted Answer

A)  increase. 
B)  not change. 
C)  decrease. 
D)  become less elastic. 
E)  become more elastic. 
A)  increase. 
B)  not change. 
C)  decrease. 
D)  become less elastic. 
E)  become more elastic.

Question 13

If the price of the firm's output increases,the demand for labor curve

Accepted Answer

A)  shifts rightward. 
B)  shifts leftward. 
C)  remains constant. 
D)  could shift rightward, leftward, or remain constant. 
E)  might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic. 
A)  shifts rightward. 
B)  shifts leftward. 
C)  remains constant. 
D)  could shift rightward, leftward, or remain constant. 
E)  might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic.

Question 14

The supply of labor curve for an individual is

Accepted Answer

A)  upward sloping at all wage rates. 
B)  downward sloping at all wage rates. 
C)  upward sloping for lower wage rates and begins to slope downward at higher wage rates. 
D)  downward sloping for lower wage rates and begins to slope upward at higher wage rates. 
E)  an upside-down U-shape. 
A)  upward sloping at all wage rates. 
B)  downward sloping at all wage rates. 
C)  upward sloping for lower wage rates and begins to slope downward at higher wage rates. 
D)  downward sloping for lower wage rates and begins to slope upward at higher wage rates. 
E)  an upside-down U-shape.

Question 15

In part,the demand for labor depends on the

Accepted Answer

A)  supply of labor. 
B)  number of workers available. 
C)  price of the firm's output. 
D)  worker's income. 
E)  wage rate at which the labor supply curve starts to bend backwards. 
A)  supply of labor. 
B)  number of workers available. 
C)  price of the firm's output. 
D)  worker's income. 
E)  wage rate at which the labor supply curve starts to bend backwards.

Question 16

The market for land

Accepted Answer

A)  has an elastic supply. 
B)  has a perfectly inelastic supply. 
C)  determines the equilibrium interest rate. 
D)  has an upward sloping supply curve. 
E)  has no equilibrium because both the demand curve and the supply curve are vertical. 
A)  has an elastic supply. 
B)  has a perfectly inelastic supply. 
C)  determines the equilibrium interest rate. 
D)  has an upward sloping supply curve. 
E)  has no equilibrium because both the demand curve and the supply curve are vertical.

Question 17

The aggregate quantity of land supplied

Accepted Answer

A)  varies depending on its price. 
B)  depends on the buying and selling decisions of individuals. 
C)  is constantly increasing. 
D)  is fixed. 
E)  is perfectly elastic. 
A)  varies depending on its price. 
B)  depends on the buying and selling decisions of individuals. 
C)  is constantly increasing. 
D)  is fixed. 
E)  is perfectly elastic.

Question 18

Which of the following statements about a firm's demand for labor curve and its value of marginal product of labor curve is true?

Accepted Answer

A)  The value of marginal product curve slopes upward and the demand for labor curve slopes downward. 
B)  The demand for labor curve shows the amount of labor firms will hire based on the wage rate while the value of marginal product curve shows the amount of output supplied based on the wage rate. 
C)  The value of marginal product curve is steeper than the demand for labor curve. 
D)  The demand for labor curve is the same as the value of marginal product curve. 
E)  The value of marginal product curve lies above the demand for labor curve. 
A)  The value of marginal product curve slopes upward and the demand for labor curve slopes downward. 
B)  The demand for labor curve shows the amount of labor firms will hire based on the wage rate while the value of marginal product curve shows the amount of output supplied based on the wage rate. 
C)  The value of marginal product curve is steeper than the demand for labor curve. 
D)  The demand for labor curve is the same as the value of marginal product curve. 
E)  The value of marginal product curve lies above the demand for labor curve.

Question 19

How does an increase in the adult population affect the labor market?

Accepted Answer

A)  The demand for labor will become more inelastic. 
B)  The supply of labor will decrease. 
C)  The supply of labor will increase. 
D)  The demand for labor will decrease. 
E)  The demand for labor will increase. 
A)  The demand for labor will become more inelastic. 
B)  The supply of labor will decrease. 
C)  The supply of labor will increase. 
D)  The demand for labor will decrease. 
E)  The demand for labor will increase.

Question 20

If the wage rate increases,then

Accepted Answer

A)  the quantity of labor supplied definitely decreases. 
B)  there is a movement upward along the supply of labor curve. 
C)  the supply of labor curve shifts rightward. 
D)  the supply of labor curve shifts left ward. 
E)  the quantity of labor supplied definitely increases. 
A)  the quantity of labor supplied definitely decreases. 
B)  there is a movement upward along the supply of labor curve. 
C)  the supply of labor curve shifts rightward. 
D)  the supply of labor curve shifts left ward. 
E)  the quantity of labor supplied definitely increases.

If the wage rate increases,a firm's demand for labor curve

If the price of movie tickets increases,there is

The demand for labor curve of nurses shifts rightward if the

For a firm selling its product in a perfectly competitive market,the demand curve for a factor of production is downward sloping because

As the quantity of land used increases,its value of marginal product

What tools can unions use to increase the demand for union labor?

The value of the marginal product of labor is calculated by multiplying the by the .

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Which rule does the United Corporation use when maximizing profit?

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

If the price of the firm's output increases,the demand for labor curve

The supply of labor curve for an individual is

In part,the demand for labor depends on the

The market for land

The aggregate quantity of land supplied

Which of the following statements about a firm's demand for labor curve and its value of marginal product of labor curve is true?

How does an increase in the adult population affect the labor market?

If the wage rate increases,then

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

If the wage rate increases,a firm's demand for labor curve

If the price of movie tickets increases,there is

The demand for labor curve of nurses shifts rightward if the

For a firm selling its product in a perfectly competitive market,the demand curve for a factor of production is downward sloping because

As the quantity of land used increases,its value of marginal product

What tools can unions use to increase the demand for union labor?

The value of the marginal product of labor is calculated by multiplying the ________ by the ________.

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

The value of marginal product of labor is equal to the marginal product of labor ________ the price of a unit of output.

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Which rule does the United Corporation use when maximizing profit?

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

If the price of the firm's output increases,the demand for labor curve

The supply of labor curve for an individual is

In part,the demand for labor depends on the

The market for land

The aggregate quantity of land supplied

Which of the following statements about a firm's demand for labor curve and its value of marginal product of labor curve is true?

How does an increase in the adult population affect the labor market?

If the wage rate increases,then

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 value of the marginal product of labor is calculated by multiplying the by the .