Exam 19: The Markets for the Factors of Production

During the Black Death, with fewer workers available to farm the land, employers were able to choose better skilled labour to employ.

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. According to the information provided, we would expect the value of marginal product for Rocchetta Industries workers to:

What are the three most important factors of production?

Graph 18-2 -Refer to Graph 18-2. If the marginal product of labour falls, which of the following will occur? (i) the value of the marginal product of labour will fall (ii) the quantity of labour demanded will fall below L₁ (iii) the supply curve will remain unchanged

Increases in productivity are not responsible for increased standards of living in Australia.

Basically, competitive firms hire workers up to the point that the benefit they receive from the worker equals which of the following?

The purchase price of land is:

Competitive firms that maximise profit will hire workers until the value of the marginal product:

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, what type of market structure is most likely to characterise the fresh tuna market?

Jack the physical therapist invents a new wrist-brace that allows assembly line labourers to work without suffering the effects of carpal-tunnel syndrome, thus making the workers more productive. The demand for assembly line workers will:

When a production function exhibits a marginal product of labour that is diminishing (but positive):

What happens to the profit earned by apple producers and the wage earned by apple pickers when the price of apples rises?

Consider a sawmill that processes logs into timber. The drying kilns at the sawmill are an example of:

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. According to the information provided, when the labour market adjusts to its new equilibrium we would expect the:

If less women leave the labour force to stay at home and raise families, the labour supply curve will decrease.

The flow from capital resources is compensated according to the:

The market wage is:

Graph 18-2 -Refer to Graph 18-2. If the price of apples increases, the:

Table 18-1 -Refer to Table 18-1. When the second worker is hired, what is the change in profit?

If workers respond to an increase in the opportunity cost of leisure by taking less of it, their labour supply curve is backward sloping, while if workers respond to an increase in the opportunity cost of leisure by taking more of it, their labour supply curve is upward-sloping.