Question 1

Why does an increase in the minimum wage increase the demand for union labor?

Accepted Answer

An increase in the minimum wage raises t

Question 2

Which of the following shift the supply of labor curve leftward?
i.an advancement in technology
ii.a decrease in the price of the product that the labor produces
iii.a decrease in the adult population

Accepted Answer

A)  i and ii 
B)  ii and iii 
C)  ii only 
D)  iii only 
E)  i, ii, and iii 
A)  i and ii 
B)  ii and iii 
C)  ii only 
D)  iii only 
E)  i, ii, and iii

Question 3

If both the demand for labor and the supply of labor increase,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

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

Question 4

-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 $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

Accepted Answer

A)  $240 
B)  $220 
C)  $24 
D)  $10 
E)  $12 
A)  $240 
B)  $220 
C)  $24 
D)  $10 
E)  $12

Question 5

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

Accepted Answer

The Hotelling Principle states that the

Question 6

A surplus of workers occurs

Accepted Answer

A)  when the wage rate exceeds the equilibrium wage rate. 
B)  when the wage rate is less than the equilibrium wage rate. 
C)  at the equilibrium wage rate. 
D)  whenever there is a shortage of goods. 
E)  whenever there is a surplus of goods. 
A)  when the wage rate exceeds the equilibrium wage rate. 
B)  when the wage rate is less than the equilibrium wage rate. 
C)  at the equilibrium wage rate. 
D)  whenever there is a shortage of goods. 
E)  whenever there is a surplus of goods.

Question 7

Which of the following is a method used by unions to increase the demand for their members' labor?

Accepted Answer

A)  Support import restrictions. 
B)  Decrease the marginal product of union members. 
C)  Increase imported goods and services 
D)  Oppose immigration restrictions. 
E)  Oppose minimum wage laws. 
A)  Support import restrictions. 
B)  Decrease the marginal product of union members. 
C)  Increase imported goods and services 
D)  Oppose immigration restrictions. 
E)  Oppose minimum wage laws.

Question 8

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $45.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 9

A firm's demand for labor curve is also

Accepted Answer

A)  its value of marginal product of labor curve. 
B)  the demand curve for the good it produces. 
C)  the supply of labor curve. 
D)  its marginal cost curve. 
E)  the supply curve for the good it produces. 
A)  its value of marginal product of labor curve. 
B)  the demand curve for the good it produces. 
C)  the supply of labor curve. 
D)  its marginal cost curve. 
E)  the supply curve for the good it produces.

Question 10

A rise in the minimum wage increases the demand for union labor because this policy change

Accepted Answer

A)  lowers the wage rate paid to union labor. 
B)  raises the productivity of union labor. 
C)  lowers the cost of a substitute for union labor. 
D)  lowers the productivity of union labor. 
E)  raises the cost of a substitute for union labor. 
A)  lowers the wage rate paid to union labor. 
B)  raises the productivity of union labor. 
C)  lowers the cost of a substitute for union labor. 
D)  lowers the productivity of union labor. 
E)  raises the cost of a substitute for union labor.

Question 11

Tom and Mary grow tomatoes.They can hire different numbers of college students to help plant,cultivate,and harvest the tomatoes.The table below gives their marginal product schedule.
   
a.If the price of a pound of tomatoes is $2 a pound,complete the first value of marginal product column in the table.If Tom and Mary must pay their workers $10 an hour,how many workers do they hire?
b.If the price of a pound of tomatoes falls to $1 a pound,complete the second value of marginal product column in the table.If Tom and Mary still must pay their workers $10 an hour,how many workers do they hire?
c.When the price of a pound of tomatoes falls,what happens to Tom and Mary's demand for labor curve?

Accepted Answer

@#IMG-DLM& 
a.The completed table is above.Tom and

Question 12

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate,Saudi Arabia will ________.If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate,Saudi Arabia will ________.

Accepted Answer

A)  hold oil off the market; want to sell oil today 
B)  want to sell oil today; hold oil off the market 
C)  decrease its demand for oil; increase its demand for oil 
D)  increase its demand for oil; decrease its demand for oil 
E)  None of the above answers are correct because the interest rate has nothing to do with Saudi Arabia's decisions in the oil market. 
A)  hold oil off the market; want to sell oil today 
B)  want to sell oil today; hold oil off the market 
C)  decrease its demand for oil; increase its demand for oil 
D)  increase its demand for oil; decrease its demand for oil 
E)  None of the above answers are correct because the interest rate has nothing to do with Saudi Arabia's decisions in the oil market.

Question 13

If the supply of labor decreases,then the equilibrium wage rate ________ and equilibrium employment ________.

Accepted Answer

A)  does not change; decreases 
B)  rises; increases 
C)  rises; decreases 
D)  falls; increases 
E)  falls; decreases 
A)  does not change; decreases 
B)  rises; increases 
C)  rises; decreases 
D)  falls; increases 
E)  falls; decreases

Question 14

Which of the following factors have a derived demand?
i.labor
ii.capital
iii.raw materials

Accepted Answer

A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only 
A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only

Question 15

The price of capital falls.Assuming that the firm does not increase the quantity it produces,in the long run the 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 16

What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

Accepted Answer

A)  It becomes more inelastic. 
B)  The supply of low-skilled labor decreases. 
C)  The supply of low-skilled labor increases. 
D)  It becomes more elastic. 
E)  None of the above answers is correct. 
A)  It becomes more inelastic. 
B)  The supply of low-skilled labor decreases. 
C)  The supply of low-skilled labor increases. 
D)  It becomes more elastic. 
E)  None of the above answers is correct.

Question 17

Land

Accepted Answer

A)  is a nonrenewable resource. 
B)  has an elastic supply but not perfectly elastic. 
C)  is the only factor of production that is not traded in a market. 
D)  has a perfectly inelastic supply. 
E)  has a perfectly elastic supply. 
A)  is a nonrenewable resource. 
B)  has an elastic supply but not perfectly elastic. 
C)  is the only factor of production that is not traded in a market. 
D)  has a perfectly inelastic supply. 
E)  has a perfectly elastic supply.

Question 18

-Kevin owns a personal training gym in Laredo,Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires one trainer,the value of marginal product of this trainer equals

Accepted Answer

A)  4 clients. 
B)  $164. 
C)  $410. 
D)  $41. 
E)  None of the above answers is correct. 
A)  4 clients. 
B)  $164. 
C)  $410. 
D)  $41. 
E)  None of the above answers is correct.

Question 19

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  the negative of 
E)  not comparable to 
A)  greater than 
B)  less than 
C)  equal to 
D)  the negative of 
E)  not comparable to

Question 20

If the supply of labor increases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

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

Why does an increase in the minimum wage increase the demand for union labor?

Which of the following shift the supply of labor curve leftward? i.an advancement in technology ii.a decrease in the price of the product that the labor produces iii.a decrease in the adult population

If both the demand for labor and the supply of labor increase,then the equilibrium wage rate and the equilibrium quantity of labor .

-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 $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

A surplus of workers occurs

Which of the following is a method used by unions to increase the demand for their members' labor?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $45.Which of the following is correct?

A firm's demand for labor curve is also

A rise in the minimum wage increases the demand for union labor because this policy change

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate,Saudi Arabia will .If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate,Saudi Arabia will .

If the supply of labor decreases,then the equilibrium wage rate and equilibrium employment .

Which of the following factors have a derived demand? i.labor ii.capital iii.raw materials

The price of capital falls.Assuming that the firm does not increase the quantity it produces,in the long run the firm's demand for labor curve

What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

Land

-Kevin owns a personal training gym in Laredo,Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires one trainer,the value of marginal product of this trainer equals

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

If the supply of labor increases,then the equilibrium wage rate and the equilibrium quantity of labor .

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

Why does an increase in the minimum wage increase the demand for union labor?

Which of the following shift the supply of labor curve leftward? i.an advancement in technology ii.a decrease in the price of the product that the labor produces iii.a decrease in the adult population

If both the demand for labor and the supply of labor increase,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

-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 $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

What is the Hotelling Principle? Have resource prices behaved as the principle predicts?

A surplus of workers occurs

Which of the following is a method used by unions to increase the demand for their members' labor?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $45.Which of the following is correct?

A firm's demand for labor curve is also

A rise in the minimum wage increases the demand for union labor because this policy change

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate,Saudi Arabia will ________.If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate,Saudi Arabia will ________.

If the supply of labor decreases,then the equilibrium wage rate ________ and equilibrium employment ________.

Which of the following factors have a derived demand? i.labor ii.capital iii.raw materials

The price of capital falls.Assuming that the firm does not increase the quantity it produces,in the long run the firm's demand for labor curve

What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

Land

-Kevin owns a personal training gym in Laredo,Texas.He charges $41 per session.The above table shows the marginal product of trainers in Kevin's gym.If Kevin hires one trainer,the value of marginal product of this trainer equals

If the wage rate is above the equilibrium wage rate,the quantity of labor demanded is ________ the quantity of labor supplied.

If the supply of labor increases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

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 both the demand for labor and the supply of labor increase,then the equilibrium wage rate and the equilibrium quantity of labor .

If Saudi Arabia expects the price of oil to rise by a larger percentage than the interest rate,Saudi Arabia will .If Saudi Arabia expects the price of oil to rise by a smaller percentage than the interest rate,Saudi Arabia will .

If the supply of labor decreases,then the equilibrium wage rate and equilibrium employment .

If the supply of labor increases,then the equilibrium wage rate and the equilibrium quantity of labor .