Question 1

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 2

The four factors of production that produce goods and services are

Accepted Answer

A) labor, money, machinery, and land. 
B) labor, capital, money, and entrepreneurship. 
C) labor, capital, land, and entrepreneurship. 
D) labor, investment capital, machinery, and land. 
E) labor, stocks, money, and bonds. 
A) labor, money, machinery, and land. 
B) labor, capital, money, and entrepreneurship. 
C) labor, capital, land, and entrepreneurship. 
D) labor, investment capital, machinery, and land. 
E) labor, stocks, money, and bonds.

Question 3

The table has the marginal products for workers at Bart's Bats, a baseball bat factory.
-Using the above table, if the price of a bat is $8, then the value of marginal product of labor of the fourth worker is

Accepted Answer

A) $40. 
B) $0.625. 
C) $1.375. 
D) 5 bats. 
E) None of the above answers is correct. 
A) $40. 
B) $0.625. 
C) $1.375. 
D) 5 bats. 
E) None of the above answers is correct.

Question 4

"The decision to employ an additional unit of labor depends on whether the value of marginal product of labor is greater than or less than the wage rate." Is the previous statement correct or incorrect?

Accepted Answer

The statement is correct.If the value of

Question 5

"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product of chefs equals the wage rate for chefs." Is the statement correct or incorrect?

Accepted Answer

The statement is correct.In or

Question 6

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 7

The four factors of production that produce goods and services are

Accepted Answer

A) labor, capital, profits, and entrepreneurship. 
B) money, labor, rent, and profit. 
C) labor, capital, land, and entrepreneurship. 
D) wages, interest, rent, and profit. 
E) wages, prices, quantities, and employment. 
A) labor, capital, profits, and entrepreneurship. 
B) money, labor, rent, and profit. 
C) labor, capital, land, and entrepreneurship. 
D) wages, interest, rent, and profit. 
E) wages, prices, quantities, and employment.

Question 8

Unions ________ free trade and ________ a higher minimum wage.

Accepted Answer

A) favor; favor 
B) are neutral toward; oppose 
C) favor; oppose 
D) oppose; favor 
E) oppose; oppose 
A) favor; favor 
B) are neutral toward; oppose 
C) favor; oppose 
D) oppose; favor 
E) oppose; oppose

Question 9

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

Question 10

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 11

"As the quantity of labor hired increases, the value of marginal product stays constant as long as the wage rate is constant for all workers." Is the previous statement correct or incorrect? Explain your answer.

Accepted Answer

The statement is incorrect.The value of

Question 12

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 $18 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) More information is needed to determine how many workers will be hired. 
A) 1 
B) 2 
C) 3 
D) 4 
E) More information is needed to determine how many workers will be hired.

Question 13

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 14

The rental rate of land is the payment for the resource land.The lower the rental rate, the greater the

Accepted Answer

A) demand for land. 
B) quantity demanded of land. 
C) supply of land. 
D) elasticity of supply for land. 
E) quantity supplied of land. 
A) demand for land. 
B) quantity demanded of land. 
C) supply of land. 
D) elasticity of supply for land. 
E) quantity supplied of land.

Question 15

A worker has a marginal product of 15 units a day, each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

Accepted Answer

It is profitable to hire this worker bec

Question 16

Over time, the actual (not expected)price of a nonrenewable natural resource

Accepted Answer

A) falls. 
B) rises. 
C) stays the same. 
D) could rise, fall, or stay the same. 
E) first rises and then falls. 
A) falls. 
B) rises. 
C) stays the same. 
D) could rise, fall, or stay the same. 
E) first rises and then falls.

Question 17

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 18

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 19

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

Accepted Answer

A renewable natural resource can be used

Question 20

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.

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

The four factors of production that produce goods and services are

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table, if the price of a bat is $8, then the value of marginal product of labor of the fourth worker is

"The decision to employ an additional unit of labor depends on whether the value of marginal product of labor is greater than or less than the wage rate." Is the previous statement correct or incorrect?

"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product of chefs equals the wage rate for chefs." Is the statement correct or incorrect?

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

The four factors of production that produce goods and services are

Unions free trade and a higher minimum wage.

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

A surplus of workers occurs

"As the quantity of labor hired increases, the value of marginal product stays constant as long as the wage rate is constant for all workers." Is the previous statement correct or incorrect? Explain your answer.

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 $18 an hour, and the price of a bat is $3, then the firm will hire ________ workers.

The demand for labor curve of nurses shifts rightward if the

The rental rate of land is the payment for the resource land.The lower the rental rate, the greater the

A worker has a marginal product of 15 units a day, each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

Over time, the actual (not expected)price of a nonrenewable natural resource

Which of the following curves is most inelastic?

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

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

Land

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

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

The four factors of production that produce goods and services are

The table has the marginal products for workers at Bart's Bats, a baseball bat factory. -Using the above table, if the price of a bat is $8, then the value of marginal product of labor of the fourth worker is

"The decision to employ an additional unit of labor depends on whether the value of marginal product of labor is greater than or less than the wage rate." Is the previous statement correct or incorrect?

"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product of chefs equals the wage rate for chefs." Is the statement correct or incorrect?

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

The four factors of production that produce goods and services are

Unions ________ free trade and ________ a higher minimum wage.

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

A surplus of workers occurs

"As the quantity of labor hired increases, the value of marginal product stays constant as long as the wage rate is constant for all workers." Is the previous statement correct or incorrect? Explain your answer.

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 $18 an hour, and the price of a bat is $3, then the firm will hire ________ workers.

The demand for labor curve of nurses shifts rightward if the

The rental rate of land is the payment for the resource land.The lower the rental rate, the greater the

A worker has a marginal product of 15 units a day, each of which can be sold for $10.Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

Over time, the actual (not expected)price of a nonrenewable natural resource

Which of the following curves is most inelastic?

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

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

Land

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

Unions free trade and a higher minimum wage.

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