Question 1

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

Accepted Answer

A) an increase in technology 
B) a decrease in technology 
C) an increase in the number of women in the work force 
D) a decrease in the adult population 
E) an increase in the wage rate 
A) an increase in technology 
B) a decrease in technology 
C) an increase in the number of women in the work force 
D) a decrease in the adult population 
E) an increase in the wage rate

Question 2

If a firm uses new technology that increases its demand for labor, the firm's demand for labor curve

Accepted Answer

A) shifts leftward. 
B) shifts rightward only if the demand for labor is elastic. 
C) shifts rightward no matter if the demand for labor is elastic or inelastic. 
D) does not shift, but there is a movement along it. 
E) shifts rightward only if the demand for labor is inelastic. 
A) shifts leftward. 
B) shifts rightward only if the demand for labor is elastic. 
C) shifts rightward no matter if the demand for labor is elastic or inelastic. 
D) does not shift, but there is a movement along it. 
E) shifts rightward only if the demand for labor is inelastic.

Question 3

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct, the supply of labor in Russia will

Accepted Answer

A) increase. 
B) not change. 
C) decrease. 
D) become less elastic. 
E) become more elastic. 
A) increase. 
B) not change. 
C) decrease. 
D) become less elastic. 
E) become more elastic.

Question 4

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

Accepted Answer

A) rise at a rate higher than the interest rate. 
B) fall at a rate greater than the interest rate. 
C) rise at a rate less than the interest rate. 
D) rise at a rate equal to the interest rate. 
E) fall at a rate equal to the interest rate. 
A) rise at a rate higher than the interest rate. 
B) fall at a rate greater than the interest rate. 
C) rise at a rate less than the interest rate. 
D) rise at a rate equal to the interest rate. 
E) fall at a rate equal to the interest rate.

Question 5

The demand for labor curve slopes downward because

Accepted Answer

A) it takes more workers to produce more output. 
B) the value of marginal product of labor diminishes as the quantity of labor employed increases. 
C) at lower wages, people are not willing to work as many hours. 
D) wages are fixed. 
E) the supply of labor curve is upward sloping. 
A) it takes more workers to produce more output. 
B) the value of marginal product of labor diminishes as the quantity of labor employed increases. 
C) at lower wages, people are not willing to work as many hours. 
D) wages are fixed. 
E) the supply of labor curve is upward sloping.

Question 6

A profit-maximizing firm hires labor up to the point where

Accepted Answer

A) price of the product equals the value of marginal product. 
B) price of the product equals the wage rate. 
C) the wage rate multiplied by the quantity of labor equals the marginal product. 
D) the wage rate equals the value of marginal product. 
E) marginal revenue equals the wage rate. 
A) price of the product equals the value of marginal product. 
B) price of the product equals the wage rate. 
C) the wage rate multiplied by the quantity of labor equals the marginal product. 
D) the wage rate equals the value of marginal product. 
E) marginal revenue equals the wage rate.

Question 7

-The above figure represents the market for professional minor-league baseball umpires.
a∙If umpires are offered $90 a game, what is the quantity of umpires supplied?
b∙If umpires are offered $90 a game, is there a surplus or shortage of games umpired? What does the shortage or surplus equal?
c∙What is the equilibrium wage rate and quantity of umpires?

Accepted Answer

a∙The quantity of umpires supplied is 20

Question 8

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 9

-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 $10 per hour and the price per pizza is $10.The marginal product of the third worker is

Accepted Answer

A) 5 pizzas per hour. 
B) 17 pizzas per hour. 
C) $220 per hour. 
D) 7 1/3 pizzas per hour. 
E) None of the above answers is correct. 
A) 5 pizzas per hour. 
B) 17 pizzas per hour. 
C) $220 per hour. 
D) 7 1/3 pizzas per hour. 
E) None of the above answers is correct.

Question 10

Which of the following is NOT a factor of production?

Accepted Answer

A) labor 
B) capital 
C) entrepreneurship 
D) bonds 
E) land 
A) labor 
B) capital 
C) entrepreneurship 
D) bonds 
E) land

Question 11

When more people remain in school for full-time education and training, the supply of low-skilled labor ________ and the supply of high-skilled labor ________.

Accepted Answer

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

Question 12

As the population of Las Vegas increased, what happened to the supply of labor and the supply curve of labor in Las Vegas?

Accepted Answer

As the population of Las Vegas

Question 13

A change in the wage rate

Accepted Answer

A) shifts the supply of labor curve so that the supply becomes more elastic. 
B) shifts the supply of labor curve leftward. 
C) shifts the supply of labor curve rightward. 
D) does not shift the supply of labor curve but instead leads to a movement along it. 
E) either shifts the supply of labor curve leftward or rightward depending whether the demand for labor curve shifts rightward or leftward. 
A) shifts the supply of labor curve so that the supply becomes more elastic. 
B) shifts the supply of labor curve leftward. 
C) shifts the supply of labor curve rightward. 
D) does not shift the supply of labor curve but instead leads to a movement along it. 
E) either shifts the supply of labor curve leftward or rightward depending whether the demand for labor curve shifts rightward or leftward.

Question 14

If the price of capital rises, in the long run the demand for labor

Accepted Answer

A) definitely increases. 
B) definitely decreases. 
C) definitely is unaffected. 
D) could increase or decrease, depending on the change in the scale of production. 
E) changes only if the supply of labor changes. 
A) definitely increases. 
B) definitely decreases. 
C) definitely is unaffected. 
D) could increase or decrease, depending on the change in the scale of production. 
E) changes only if the supply of labor changes.

Question 15

If UPS hires another worker, UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

Accepted Answer

A) $5. 
B) $100. 
C) $4. 
D) 20 packages. 
E) $20. 
A) $5. 
B) $100. 
C) $4. 
D) 20 packages. 
E) $20.

Question 16

The more people who remain in school for full-time education and training, the ________ is the ________ low-skilled labor.

Accepted Answer

A) smaller; demand for 
B) smaller; supply of 
C) larger; supply of 
D) larger; demand for 
E) less elastic; demand for 
A) smaller; demand for 
B) smaller; supply of 
C) larger; supply of 
D) larger; demand for 
E) less elastic; demand for

Question 17

The demand for carpenters needed to build houses represents a

Accepted Answer

A) direct demand. 
B) derived demand. 
C) marginal demand/cost for input. 
D) supplied demand. 
E) directed supply. 
A) direct demand. 
B) derived demand. 
C) marginal demand/cost for input. 
D) supplied demand. 
E) directed supply.

Question 18

Which of the following is true?

Accepted Answer

A) The value to a firm of hiring another worker is the worker's value of marginal product. 
B) A firm will hire more workers if the wage rate is greater than the value of marginal product. 
C) The value of marginal product is the cost of hiring a worker. 
D) The value of marginal product increases as more workers are hired. 
E) The value of marginal product equals the price of the good produced divided by the marginal product. 
A) The value to a firm of hiring another worker is the worker's value of marginal product. 
B) A firm will hire more workers if the wage rate is greater than the value of marginal product. 
C) The value of marginal product is the cost of hiring a worker. 
D) The value of marginal product increases as more workers are hired. 
E) The value of marginal product equals the price of the good produced divided by the marginal product.

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

If a firm uses new technology that increases its demand for labor, the firm's demand for labor curve

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct, the supply of labor in Russia will

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

The demand for labor curve slopes downward because

A profit-maximizing firm hires labor up to the point where

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

-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 $10 per hour and the price per pizza is $10.The marginal product of the third worker is

Which of the following is NOT a factor of production?

When more people remain in school for full-time education and training, the supply of low-skilled labor and the supply of high-skilled labor .

As the population of Las Vegas increased, what happened to the supply of labor and the supply curve of labor in Las Vegas?

A change in the wage rate

If the price of capital rises, in the long run the demand for labor

If UPS hires another worker, UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

The more people who remain in school for full-time education and training, the is the low-skilled labor.

The demand for carpenters needed to build houses represents a

Which of the following is true?

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

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

If a firm uses new technology that increases its demand for labor, the firm's demand for labor curve

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct, the supply of labor in Russia will

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

The demand for labor curve slopes downward because

A profit-maximizing firm hires labor up to the point where

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

-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 $10 per hour and the price per pizza is $10.The marginal product of the third worker is

Which of the following is NOT a factor of production?

When more people remain in school for full-time education and training, the supply of low-skilled labor ________ and the supply of high-skilled labor ________.

As the population of Las Vegas increased, what happened to the supply of labor and the supply curve of labor in Las Vegas?

A change in the wage rate

If the price of capital rises, in the long run the demand for labor

If UPS hires another worker, UPS will be able to deliver an additional 20 packages an hour.The price of each package is $5.The value of this worker's marginal product is equal to

The more people who remain in school for full-time education and training, the ________ is the ________ low-skilled labor.

The demand for carpenters needed to build houses represents a

Which of the following is true?

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

When more people remain in school for full-time education and training, the supply of low-skilled labor and the supply of high-skilled labor .

The more people who remain in school for full-time education and training, the is the low-skilled labor.