Exam 18: The Markets for the Factors of Production

Which of the following would shift a market labor supply curve to the left?

In the United States,technological advances help explain persistently rising employment in the face of rising wages.

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-saving technology,

Owners of land are compensated according to the

Table 18-3 -When labor is the only input a firm uses,the marginal cost of a unit of output can be defined as

Figure 18-6 -Refer to Figure 18-6.The shift of the labor demand curve from D₁ to D₂ could possibly be explained by

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.The shape of the curve suggests the presence of

A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal product of labor.

Table 18-4 Consider the following daily production data for Wills Golf Balls.Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day. -Refer to Table 18-4.Assume that Wills is a competitive,profit-maximizing firm.If the market price of golf balls decreases from $2.50 to $2.00,how many workers would the firm then hire?

Figure 18-4 This figure below shows the labor market for automobile workers.The curve labeled S is the labor supply curve,and the curves labeled D₁ and D₂ are the labor demand curves.On the horizontal axis,L represents the quantity of labor in the market. -Refer to Figure 18-4.Which of the following is a possible explanation of the shift of the labor-demand curve from D₁ to D₂?

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

Consider the market for capital equipment.Suppose the market price of firms' output decreases.Holding all else constant,what will happen to the equilibrium quantity of capital equipment?

Who receives income from capital in the United States?

Technological advances can cause the labor demand curve to shift.

The rental price of capital is

Consider the market for university economics professors.Suppose the opportunity cost of going to graduate school to get a Ph.D.in economics decreases for many individuals.Since it generally takes about five years to get a Ph.D.in economics,holding all else constant,what will happen to the equilibrium wage for university economics professors in five years?

Suppose that the market for labor is initially in equilibrium.An increase in immigration will cause

Suppose that a large lake in the middle of Minnesota evaporates,leaving more fertile farm land for growing corn available.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and rents earned by landowners?

Consider the labor market for computer programmers.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the labor market for computer programmers?

Suppose that in January a profit-maximizing firm has 25 employees.By February,the firm has decreased employment.One can infer that,when 25 employees are hired,the