Exam 18: Markets for Factors of Production

Use the figure below to answer the following questions. Figure 18.3.1 -Refer to Figure 18.3.1. This figure shows the value of marginal product of labour curve, the labour supply curve, and the marginal cost of labour curve. If this labour market is competitive, the wage rate is

If the price of a natural resource is expected to rise at a rate that exceeds the interest rate, demand ________ and supply ________.

Coal is an example of

Use the table below to answer the following questions. Table 18.2.1 -Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $10 a unit, what is the profit-maximizing number of workers if the wage rate is $30?

Use the table below to answer the following questions. Table 18.2.2 Wendy owns an apple orchard and she employs students to pick the apples. In an hour they can pick the following amounts: -Refer to Table 18.2.2. If the price of apples is $0.50 per kilogram, the value of marginal product of the 5th student is

The Internet is ________ natural resource. Power generated by wind turbines is ________ natural resource.

To maximize profit, a firm hires labour until

Use the information below to answer the following questions. Fact 18.4.1 Water is a natural resource that is plentiful in Canada but not plentiful in Arizona and southern California. Suppose Canadians start to export bulk water to Arizona and southern California. -Refer to Fact 18.4.1. The Hotelling Principle ________ apply to Canada's water because the Hotelling Principle ________.

Use the information below to answer the following questions. Fact 18.2.1 Wanda's is a fish store that hires students to pack the fish. The fish market is competitive. Originally the price is 50¢ a kilogram. The market for packers is competitive and their market wage rate is $7.50 an hour. Then the market price of fish falls to 33.33¢ a kilogram but the wage rate of fish packers remains at $7.50 an hour. -Refer to Fact 18.2.1. As a result, students' marginal product ________ and students' value of marginal product ________.

Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is less than the wage rate, the firm should

If marginal product of a restaurant employee is 10 customers per hour, and the price of a meal is $15, the restaurant employee's value of marginal product is

Which one of the following would unions be most likely to support?

Use the figure below to answer the following questions. Figure 18.3.3 -Refer to Figure 18.3.3. For the monopsonist employer illustrated in this figure, the profit-maximizing wage rate is ________ and the quantity of labour hired is ________.

Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is greater than the wage rate, the firm should

If the present value of the $1,000 to be received in one year is $800, the interest rate is

A shift in a firm's demand curve for labour occurs when there is a change in the

The present value of a future payment of money will be higher the

If the value of marginal product of capital decreases as more capital is employed, then the

Mr. Smith's firm competes in a perfectly competitive market. The firm is currently hiring 30 workers. The value of marginal product of the last worker is $7.00 per hour. The wage rate is $8.00 per hour. To increase profit, Mr. Smith should

To increase the demand for union labour, unions do all of the following except