Exam 19: The Markets for the Factors of Production

Gertrude Kelp owns three boats that participate in commercial fishing for fresh tuna. As part of her business she hires a captain and several crew members for each boat. In the market for fresh tuna, Gertrude is one of thousands of fishers. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of tuna is negligible relative to the size of the market. -According to the information provided, labour market theory assumes that Gertrude's demand for crew workers and her supply of fresh tuna results from:

When labour is the only input a firm uses, the marginal cost of a unit of output can be defined as:

If one observes a profit-maximising firm decreasing employment, it is possible to infer that the:

A profit-maximising employer will always hire up to the point where the:

The demand curve for each factor reflects the marginal productivity of that factor.

The production function is the relationship between the quantity of inputs used to make a good and the quantity of output of that good.

Rocchetta Industries manufactures and supplies bottled water in Mexico. As a result of a contamination of water supplies at many of Mexico's resort communities, the demand for bottled water has increased. In the labour market that Rocchetta uses to staff its bottling plants, an increase in demand for bottled water would lead to a(n):

Which of the following would be considered key determinants of labour productivity? (i) physical capital (ii) human capital (iii) technological knowledge

What happens to the labour supply in the pear-picking market when the apple pickers get a wage rise?

When firms are able to increase the amount of physical capital available to workers, the:

In the fourteenth century, the Black Death caused:

Graph 18-1 This graph represents the value of marginal product for a firm that sells its product in a competitive market. Use the graph to answer the following question(s). -Refer to Graph 18-1. To maximise profit, a firm would hire labour at a level:

The idea that rational employers think at the margin is central to understanding how many units of labour they choose to employ.

At the profit-maximising amount of labour, the wage equals which of the following? (i) price × the marginal product of labour (ii) the value of the marginal product of labour (iii) marginal cost

Amy has two jobs, one for the winter and one for the summer. In the winter, she works as a tour guide at a crocodile zoo and earns $15 an hour. During the summer, Amy works as an English tutor and earns $18 an hour. -According to the information provided, what is Amy's opportunity cost of taking an hour off from work and going surfing during the summer months?