Exam 18: The Markets for the Factors of Production

For a retail gasoline station,which of the following would qualify as capital? (i) the gas tanks and pumps (ii) the service attendants' time (iii) the plot of land on which the station sits

For a competitive firm experiencing diminishing marginal productivity,the value of the marginal product (i) increases when the price of output decreases. (ii) changes when marginal product changes. (iii) diminishes as the number of workers rises.

The Black Death in fourteenth-century Europe resulted in

When firms are able to increase the amount of physical capital available to workers,the

Consider the labor market for heath care workers,which is in equilibrium.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,what effect does this have on the labor market for health care employees?

Bill is trying to convince the owner of a pizza shop to hire him.He argues that he could help the shop sell an additional five pizzas per day at the market price of $8 each.If the facts are not in dispute,but the owner does not hire him,then

The quantity available of one factor of production can affect the marginal product of other factors.

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers.Describe the effect of the flood on the marginal productivity of land,labor,and capital.How would the flood affect the price of inputs? Provide some examples.

When we focus on the firm as a supplier of a good or a service,we assume that the firm is a profit maximizer.When we focus on the firm as a demander of labor,we assume that the firm's objective is to

The term Luddite is used to describe

Which of the following events would lead to an increase in the supply of labor?

The rental price of capital is

Using the theory of wage determination,explain why wages in developing countries are typically quite low.

If a firm experiences diminishing marginal productivity of labor,the marginal product

Suppose that technological progress increases the productivity of teachers.Which of the following accurately describes the labor market for teachers after the technological change?

Figure 18-4 -Refer to Figure 18-4.If the relevant labor demand curve is D₂ and the current wage is W₁,

Factor markets are different from product markets in an important way because

Changes in supply and demand in the labor market will cause changes in wages.

A Luddite would be expected to fear