Question 1

In a bilateral monopoly, the wage rate is likely to be ________ than the value of marginal product of labor and ________ than in a pure monopsony.

Accepted Answer

A)  lower; lower 
B)  lower; higher 
C)  higher; lower 
D)  higher; higher 
A)  lower; lower 
B)  lower; higher 
C)  higher; lower 
D)  higher; higher

Question 2

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $50 per day, how many workers should Winnie employ to maximize his profit?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 3

An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately

Accepted Answer

A)  $250. 
B)  $272. 
C)  $288. 
D)  $300. 
A)  $250. 
B)  $272. 
C)  $288. 
D)  $300.

Question 4

-The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to

Accepted Answer

A)  an increase in the quantity of labor demanded. 
B)  a decrease in the quantity of labor demanded. 
C)  an increase in the demand for labor. 
D)  a decrease in the demand for labor. 
A)  an increase in the quantity of labor demanded. 
B)  a decrease in the quantity of labor demanded. 
C)  an increase in the demand for labor. 
D)  a decrease in the demand for labor.

Question 5

In a monopsony labor market, the employer hires the quantity of labor where the ________ equals the ________.

Accepted Answer

A)  marginal revenue of labor; marginal cost of labor 
B)  marginal cost of labor; marginal product of labor 
C)  marginal product of labor; value of marginal product of labor 
D)  marginal cost of labor; value of marginal product of labor 
A)  marginal revenue of labor; marginal cost of labor 
B)  marginal cost of labor; marginal product of labor 
C)  marginal product of labor; value of marginal product of labor 
D)  marginal cost of labor; value of marginal product of labor

Question 6

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $62.50 per day, how many workers should Winnie employ to maximize his profit?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 7

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

Accepted Answer

If a company stopped adding workers at t

Question 8

-The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring

Accepted Answer

A)  800 hours of labor at a wage of $5 per hour. 
B)  600 hours of labor at a wage of $10 per hour. 
C)  400 hours of labor at a wage of $5 per hour. 
D)  200 hours of labor at a wage of $5 per hour. 
A)  800 hours of labor at a wage of $5 per hour. 
B)  600 hours of labor at a wage of $10 per hour. 
C)  400 hours of labor at a wage of $5 per hour. 
D)  200 hours of labor at a wage of $5 per hour.

Question 9

Americans are always connected today, talking on the phone at home, while driving down the road and while shopping for groceries. But that wasn't always the case. In fact, it wasn't that long ago people had to go through an operator in order to get connected with the person they were trying to reach. How do cell phones impact the labor market for telephone operators?

Accepted Answer

A)  Decreased telephone operators' value of marginal product 
B)  Increased the demand for telephone operators 
C)  Increased the supply for telephone operators 
D)  Decreased the marginal productivity of telephone operators 
A)  Decreased telephone operators' value of marginal product 
B)  Increased the demand for telephone operators 
C)  Increased the supply for telephone operators 
D)  Decreased the marginal productivity of telephone operators

Question 10

The supply of a renewable resource is perfectly elastic.

Accepted Answer

A) True 
 B)False

Question 11

Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products ________ the demand for bakers and ________ the equilibrium wage rate paid to bakers.

Accepted Answer

A)  increased; raised 
B)  decreased; raised 
C)  increased; lowered 
D)  decreased; lowered 
A)  increased; raised 
B)  decreased; raised 
C)  increased; lowered 
D)  decreased; lowered

Question 12

Profit is the factor price for ________.

Accepted Answer

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

Question 13

-City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve. If a minimum wage law is passed that requires employers to pay at least $7 per hour, City-Mart will employ ________ hours of sales clerk labor per day.

Accepted Answer

A)  35 
B)  110 
C)  90 
D)  70 
A)  35 
B)  110 
C)  90 
D)  70

Question 14

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?

Accepted Answer

A)  $100 
B)  $20 
C)  $30 
D)  $125 
A)  $100 
B)  $20 
C)  $30 
D)  $125

Question 15

When Sam's Scarves uses 2 knitting machines and employs 3 people, total revenue is $330 a day. When Sam's Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the third worker is ________.

Accepted Answer

A)  $110 
B)  $30 
C)  $360 
D)  $90 
A)  $110 
B)  $30 
C)  $360 
D)  $90

Question 16

The present value of $100 to be received in a year is

Accepted Answer

A)  less than $100 and falls as the interest rate rises. 
B)  less than $100 and rises as the interest rate rises. 
C)  more than $100 and falls as the interest rate rises. 
D)  more than $100 and rises as the interest rate rises. 
A)  less than $100 and falls as the interest rate rises. 
B)  less than $100 and rises as the interest rate rises. 
C)  more than $100 and falls as the interest rate rises. 
D)  more than $100 and rises as the interest rate rises.

Question 17

An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the

Accepted Answer

A)  demand curve for union labor rightward. 
B)  demand curve for union labor leftward. 
C)  supply curve of union labor rightward. 
D)  supply curve of union labor leftward. 
A)  demand curve for union labor rightward. 
B)  demand curve for union labor leftward. 
C)  supply curve of union labor rightward. 
D)  supply curve of union labor leftward.

Question 18

If a union is unable to increase the demand for its workers, then success at raising the wage rate paid its members means that

Accepted Answer

A)  all union members receive a higher wage. 
B)  some union members will lose their jobs. 
C)  more union members will be hired. 
D)  the union will push for a decrease in the minimum wage. 
A)  all union members receive a higher wage. 
B)  some union members will lose their jobs. 
C)  more union members will be hired. 
D)  the union will push for a decrease in the minimum wage.

Question 19

A monopsony will never pay a wage that is

Accepted Answer

A)  equal to the minimum wage. 
B)  less than the value of marginal product. 
C)  more than the value of marginal product. 
D)  negotiated with the union. 
A)  equal to the minimum wage. 
B)  less than the value of marginal product. 
C)  more than the value of marginal product. 
D)  negotiated with the union.

Question 20

-The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. The equilibrium wage rate is ________ an hour and the quantity of labor employed is ________ hours per day.

Accepted Answer

A)  $5; 600 
B)  $25; 200 
C)  $15; 400 
D)  None of the above answers is correct. 
A)  $5; 600 
B)  $25; 200 
C)  $15; 400 
D)  None of the above answers is correct.

In a bilateral monopoly, the wage rate is likely to be than the value of marginal product of labor and than in a pure monopsony.

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $50 per day, how many workers should Winnie employ to maximize his profit?

An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately

-The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to

In a monopsony labor market, the employer hires the quantity of labor where the equals the .

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $62.50 per day, how many workers should Winnie employ to maximize his profit?

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

-The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring

The supply of a renewable resource is perfectly elastic.

Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products the demand for bakers and the equilibrium wage rate paid to bakers.

Profit is the factor price for ________.

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?

When Sam's Scarves uses 2 knitting machines and employs 3 people, total revenue is $330 a day. When Sam's Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the third worker is ________.

The present value of $100 to be received in a year is

An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the

If a union is unable to increase the demand for its workers, then success at raising the wage rate paid its members means that

A monopsony will never pay a wage that is

-The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. The equilibrium wage rate is an hour and the quantity of labor employed is hours per day.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Economic Inequality

Uncertainty and Information

Filters

Exam 18: Markets for Factors of Production

In a bilateral monopoly, the wage rate is likely to be ________ than the value of marginal product of labor and ________ than in a pure monopsony.

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $50 per day, how many workers should Winnie employ to maximize his profit?

An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately

-The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to

In a monopsony labor market, the employer hires the quantity of labor where the ________ equals the ________.

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $62.50 per day, how many workers should Winnie employ to maximize his profit?

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

-The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring

The supply of a renewable resource is perfectly elastic.

Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products ________ the demand for bakers and ________ the equilibrium wage rate paid to bakers.

Profit is the factor price for ________.

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?

When Sam's Scarves uses 2 knitting machines and employs 3 people, total revenue is $330 a day. When Sam's Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the third worker is ________.

The present value of $100 to be received in a year is

An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the

If a union is unable to increase the demand for its workers, then success at raising the wage rate paid its members means that

A monopsony will never pay a wage that is

-The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. The equilibrium wage rate is ________ an hour and the quantity of labor employed is ________ hours per day.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Economic Inequality

Uncertainty and Information

Filters

In a bilateral monopoly, the wage rate is likely to be than the value of marginal product of labor and than in a pure monopsony.

In a monopsony labor market, the employer hires the quantity of labor where the equals the .

Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products the demand for bakers and the equilibrium wage rate paid to bakers.

-The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. The equilibrium wage rate is an hour and the quantity of labor employed is hours per day.