Question 1

If the supply of a factor is perfectly inelastic,then

Accepted Answer

A)  no more than the existing quantity can be supplied. 
B)  the supply curve is horizontal. 
C)  sellers will provide whatever quantity is demanded at the going price. 
D)  a rise in price results in no quantity being supplied. 
E)  a fall in price results in no quantity being supplied. 
A)  no more than the existing quantity can be supplied. 
B)  the supply curve is horizontal. 
C)  sellers will provide whatever quantity is demanded at the going price. 
D)  a rise in price results in no quantity being supplied. 
E)  a fall in price results in no quantity being supplied.

Question 2

Robotic technology is a substitute for labor in many manufacturing processes.If the price of robotic technology decreases and the scale of the firm's production does not change,there is

Accepted Answer

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

Question 3

Which of the following methods is used by unions to increase the demand for the labor of its members?

Accepted Answer

A)  Decrease the marginal product of union members 
B)  Support minimum wage laws 
C)  Support free trade 
D)  Support laws that increase immigration into the country 
E)  Decrease demand for the good produced 
A)  Decrease the marginal product of union members 
B)  Support minimum wage laws 
C)  Support free trade 
D)  Support laws that increase immigration into the country 
E)  Decrease demand for the good produced

Question 4

Other things remaining the same,the

Accepted Answer

A)  higher the rental rate of capital, the greater the quantity of capital demanded. 
B)  lower the rental rate of capital, the smaller the quantity of capital demanded. 
C)  higher the rental rate of capital, the smaller the quantity of capital demanded. 
D)  rental rate of capital and the quantity of capital demanded are not related. 
E)  higher the rental rate of capital, the more the demand for capital decreases. 
A)  higher the rental rate of capital, the greater the quantity of capital demanded. 
B)  lower the rental rate of capital, the smaller the quantity of capital demanded. 
C)  higher the rental rate of capital, the smaller the quantity of capital demanded. 
D)  rental rate of capital and the quantity of capital demanded are not related. 
E)  higher the rental rate of capital, the more the demand for capital decreases.

Question 5

If the demand for labor decreases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

A)  falls; increases 
B)  might rise, fall, or not change; increases 
C)  rises; might increase, decrease, or not change 
D)  falls; decreases 
E)  falls; does not change 
A)  falls; increases 
B)  might rise, fall, or not change; increases 
C)  rises; might increase, decrease, or not change 
D)  falls; decreases 
E)  falls; does not change

Question 6

Why is the demand for labor a "derived demand"?

Accepted Answer

The demand for labor arises because we n

Question 7

The table has the marginal products for workers at Bart's Bats, a baseball bat factory.
-Using the above table,if the wage rate for a worker in a baseball bat manufacturing plant is $12 an hour,and the price of a bat is $3,then the firm will hire ________ workers.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  5 
A)  1 
B)  2 
C)  3 
D)  4 
E)  5

Question 8

What is the value of marginal product of labor? What is the formula that can be used to calculate? How does the value of the marginal product affect how much labor a firm hires?

Accepted Answer

The value of marginal product of labor i

Question 9

Why is the supply of an nonrenewable natural resource perfectly elastic?

Accepted Answer

The supply of an nonrenewable natural re

Question 10

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Accepted Answer

A)  will sell all its coal now. 
B)  will sell none of its coal now but will sell it all next year regardless of the price next year. 
C)  will sell none of its coal now but might sell it all next year. 
D)  will sell half of the coal today and half of it next year. 
E)  might or might not sell the coal today, depending on the price the firm paid for the coal. 
A)  will sell all its coal now. 
B)  will sell none of its coal now but will sell it all next year regardless of the price next year. 
C)  will sell none of its coal now but might sell it all next year. 
D)  will sell half of the coal today and half of it next year. 
E)  might or might not sell the coal today, depending on the price the firm paid for the coal.

Question 11

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

Accepted Answer

A)  there is a shortage of economists in Philadelphia. 
B)  salaries for economists fall. 
C)  there is equilibrium in this market. 
D)  the labor supply curve for economists in Philadelphia is vertical. 
E)  the labor demand curve for economists in Philadelphia shifts rightward. 
A)  there is a shortage of economists in Philadelphia. 
B)  salaries for economists fall. 
C)  there is equilibrium in this market. 
D)  the labor supply curve for economists in Philadelphia is vertical. 
E)  the labor demand curve for economists in Philadelphia shifts rightward.

Question 12

Which of the following curves is most inelastic?

Accepted Answer

A)  the supply of land 
B)  the supply of labor for an individual worker 
C)  the supply of labor for all workers 
D)  the demand for capital 
E)  the demand for labor 
A)  the supply of land 
B)  the supply of labor for an individual worker 
C)  the supply of labor for all workers 
D)  the demand for capital 
E)  the demand for labor

Question 13

An individual's labor supply curve eventually bends backward because at a high enough wage rate,

Accepted Answer

A)  people are willing to work more hours. 
B)  employers are willing to hire more workers. 
C)  people desire more leisure time. 
D)  very few workers are hired. 
E)  more people enter the labor market to search for jobs. 
A)  people are willing to work more hours. 
B)  employers are willing to hire more workers. 
C)  people desire more leisure time. 
D)  very few workers are hired. 
E)  more people enter the labor market to search for jobs.

Question 14

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

Accepted Answer

A renewable natural resource can be used

Question 15

An increase in the price of the firm's output leads to a

Accepted Answer

A)  movement up along the demand for labor curve. 
B)  movement down along the demand for labor curve. 
C)  rightward shift of the demand for labor curve. 
D)  leftward shift of the demand for labor curve. 
E)  rightward shift of the supply of labor curve. 
A)  movement up along the demand for labor curve. 
B)  movement down along the demand for labor curve. 
C)  rightward shift of the demand for labor curve. 
D)  leftward shift of the demand for labor curve. 
E)  rightward shift of the supply of labor curve.

Question 16

Unions support immigration restrictions because the restrictions create

Accepted Answer

A)  an increase in the supply of union labor. 
B)  a decrease in the supply of union labor. 
C)  unemployment. 
D)  an increase in the demand for union labor. 
E)  a decrease in the demand for union labor. 
A)  an increase in the supply of union labor. 
B)  a decrease in the supply of union labor. 
C)  unemployment. 
D)  an increase in the demand for union labor. 
E)  a decrease in the demand for union labor.

Question 17

What factors shift the demand for labor curve? Briefly describe the effect of each.

Accepted Answer

Three factors shift the demand for labor

Question 18

Entrepreneurship differs from the other factors of production because it

Accepted Answer

A)  is not real. 
B)  is the most important. 
C)  has only existed since the new economy of the 1990s. 
D)  is not traded in a factor market. 
E)  is not paid. 
A)  is not real. 
B)  is the most important. 
C)  has only existed since the new economy of the 1990s. 
D)  is not traded in a factor market. 
E)  is not paid.

Question 19

Suppose the Miami Dolphins are considering adding another backup quarterback to their roster.If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000,to maximize their profit the Dolphins should

Accepted Answer

A)  add the new quarterback. 
B)  add two new quarterbacks. 
C)  not add the new quarterback. 
D)  not add the new quarterback and, in fact, get rid of at least one other backup quarterback. 
E)  Not enough information is given to determine if the Dolphins should hire the quarterback. 
A)  add the new quarterback. 
B)  add two new quarterbacks. 
C)  not add the new quarterback. 
D)  not add the new quarterback and, in fact, get rid of at least one other backup quarterback. 
E)  Not enough information is given to determine if the Dolphins should hire the quarterback.

Question 20

The equilibrium quantity of capital is

Accepted Answer

A)  determined by only the supply of capital because the supply is perfectly inelastic. 
B)  determined by only the supply of capital because the supply is perfectly elastic. 
C)  expected to increase at the same rate as the interest rate. 
D)  determined by the supply of capital and the demand for capital. 
E)  the only factor of production whose quantity is not determined in a market. 
A)  determined by only the supply of capital because the supply is perfectly inelastic. 
B)  determined by only the supply of capital because the supply is perfectly elastic. 
C)  expected to increase at the same rate as the interest rate. 
D)  determined by the supply of capital and the demand for capital. 
E)  the only factor of production whose quantity is not determined in a market.

If the supply of a factor is perfectly inelastic,then

Robotic technology is a substitute for labor in many manufacturing processes.If the price of robotic technology decreases and the scale of the firm's production does not change,there is

Which of the following methods is used by unions to increase the demand for the labor of its members?

Other things remaining the same,the

If the demand for labor decreases,then the equilibrium wage rate and the equilibrium quantity of labor .

Why is the demand for labor a "derived demand"?

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the wage rate for a worker in a baseball bat manufacturing plant is $12 an hour,and the price of a bat is $3,then the firm will hire ________ workers.

What is the value of marginal product of labor? What is the formula that can be used to calculate? How does the value of the marginal product affect how much labor a firm hires?

Why is the supply of an nonrenewable natural resource perfectly elastic?

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

Which of the following curves is most inelastic?

An individual's labor supply curve eventually bends backward because at a high enough wage rate,

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

An increase in the price of the firm's output leads to a

Unions support immigration restrictions because the restrictions create

What factors shift the demand for labor curve? Briefly describe the effect of each.

Entrepreneurship differs from the other factors of production because it

Suppose the Miami Dolphins are considering adding another backup quarterback to their roster.If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000,to maximize their profit the Dolphins should

The equilibrium quantity of capital is

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 supply of a factor is perfectly inelastic,then

Robotic technology is a substitute for labor in many manufacturing processes.If the price of robotic technology decreases and the scale of the firm's production does not change,there is

Which of the following methods is used by unions to increase the demand for the labor of its members?

Other things remaining the same,the

If the demand for labor decreases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Why is the demand for labor a "derived demand"?

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table,if the wage rate for a worker in a baseball bat manufacturing plant is $12 an hour,and the price of a bat is $3,then the firm will hire ________ workers.

What is the value of marginal product of labor? What is the formula that can be used to calculate? How does the value of the marginal product affect how much labor a firm hires?

Why is the supply of an nonrenewable natural resource perfectly elastic?

The price of coal is currently $80 per ton and the interest rate is 10 percent per year.If next year's expected price is $86 per ton,a firm that owns 1,000 tons of coal

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

Which of the following curves is most inelastic?

An individual's labor supply curve eventually bends backward because at a high enough wage rate,

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

An increase in the price of the firm's output leads to a

Unions support immigration restrictions because the restrictions create

What factors shift the demand for labor curve? Briefly describe the effect of each.

Entrepreneurship differs from the other factors of production because it

Suppose the Miami Dolphins are considering adding another backup quarterback to their roster.If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000,to maximize their profit the Dolphins should

The equilibrium quantity of capital is

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

If the demand for labor decreases,then the equilibrium wage rate and the equilibrium quantity of labor .