Exam 18: Markets for Factors of Production

-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 $37.50 per day, how many workers should Winnie employ to maximize his profit?

If people suddenly start to expect the price of oil to rise less rapidly than the interest rate, the demand for oil ________ and the supply of oil ________.

The demand for labor increases (that is, the demand for labor curve shifts rightward) if the

What factors other than the wage rate influence the demand for labor? How is demand affected by changes in these factors?

The union representing the bread makers at the Hostess Bread Company went on strike and demanded higher wages than what the firm wanted to pay. I. If the firm is in a competitive labor market the union can only raise wages by decreasing employment. II) If the firm is a monopsony in the labor market the union can only raise wages by decreasing employment. III) If the firm is a monopsony in the labor market the union can both raise wages and increase employment.

The monopsony will hire the amount of labor so that the

The proposition that the price of a resource is expected to rise at a rate equal to the interest rate is called the

Which of the following is a method used by unions to increase the demand for their members' labor?

-The above figure shows the market for labor. The employer is a monopsony. If a minimum wage is set at $10 per hour, which of the following will occur?

-In the table above, the value of marginal product of the third unit of labor is

Which of the following is NOT a method by which unions try to increase the demand for the labor of their members?

-The above figure shows the market for labor. The employer is a monopsony. The firm will maximize its profit by hiring 400 hours of labor because at that point

The change in total revenue that results from employing one more unit of labor is called the

-In the above figure, which curve depicts the supply of land for Chicago's "Magnificent Mile"?

The opportunity cost of leisure is

A worker supplies labor to the market if the

-Consider the monopsony in the above figure. The monopsony will hire ________ hours per week.

If a firm faces a labor supply curve that is positively sloped, then the marginal cost of labor curve

-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. City-Mart sales clerks' wage is ________ it would be if the labor market were competitive.

-Consider the labor market depicted in the above figure. The competitive equilibrium would be for workers to be paid an hourly wage equal to