Exam 19: The Markets for the Factors of Production

When an economist refers to a firm's capital, she/he is likely to be using the term to describe the:

An example of labour in the fishing industry would be the:

A firm's willingness to pay for a factor of production ultimately depends on the demand for the goods the input is used to produce. This type of demand is called:

If consumers demand more abalone, the value of the marginal product of labour for abalone fishers will:

If an increase in the number of workers leads to all workers becoming less productive, this situation is called:

Suppose that a profit-maximising firm is increasing employment. A likely reason for this is that the:

In a competitive market for labour, the equilibrium wage always equals the value of the marginal product.

The labour supply curve is fundamentally a representation of the trade-off people face between which of the following?

Assume that the South African labour market was in equilibrium before the Zimbabwean situation. At the equilibrium wage that prevailed in South Africa prior to the Zimbabwean situation, what would the post-war status of the labour market be?

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. If a firm were operating at a level of output below Q*, hiring more workers would:

The relationship between labour productivity and wages is that if:

The profit-maximising employment rule for a competitive firm ensures that:

Assuming the standard criteria for profit maximisation, a competitive firm's final good price will equal the wage paid to labourers divided by their marginal product.

Movements of workers from country to country can cause shifts in the labour supply curve.

If the government designates certain areas within a community to be wetlands, and therefore illegal to build upon, what happens to land not classified as wetlands within the community? (i) the marginal product of land will fall (ii) the marginal product of land will rise (iii) the price of land will rise

Grahame has a crocodile farm. He collects eggs from the wild which are hatched on the farm. Suppose flooding is very severe this year and eggs become much harder to find. As a result, Grahame should expect to see the marginal productivity of his labour:

The x-axis of the production function typically measures:

The marginal product of a worker is equivalent to:

The equilibrium rental income paid to landowners at any point in time equals the:

What happens to the demand for piano tuners and the wage paid to piano tuners with the implementation of improved tuning instruments?