Exam 12: Wages and Employment in Perfect Competition

Use the following to answer question(s): Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market -(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price for "bricks laid in the wall" by a bricklayer is $.10 a brick, the total production of bricks by the first 3 bricklayers is _______ bricks.

In a perfectly competitive labor market, the price of a resource to a firm is the same as the firm's marginal factor cost.

The fact that wages in the United States have tended to _______ indicates that the ________ labor has increased more than the _______ labor.

A factor demand curve will shift because of:

Hiring labor up to the point that the extra revenue generated by the additional labor equals the extra cost is an application of the:

A firm's demand curve for an input in a perfectly competitive market is the downward-sloping portion of its:

A higher wage _______ the price of _______ and _______ workers incomes.The result of these two changes pulls the quantity of labor supplied in _______ direction(s).

Labor markets are best used to analyze the entire economy and are ineffective when used to analyze particular job categories or geographical areas.

Which of the following statements is true?

In terms of contribution to total income, the single most important factor of production is:

Use the following to answer question(s): Demand and Supply in a Perfectly Competitive Labor Market -(Exhibit: Demand and Supply in a Perfectly Competitive Labor Market) Which of the following statements is true?

A backward-bending supply curve of labor shows that at relatively high wages the:

Use the following to answer question(s): -(Exhibit: Marginal Revenue Product and Demand) If the product price is $2 per unit and the price of the factor of production is $20 per unit, the profit-maximizing quantity of the factor is _______ units.

Which of the following statements is true?

A change in the quantity demanded of peanuts, a factor of production used to produce chocolate-covered peanuts, will occur if:

Use the following to answer question(s): -(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $180 per unit, the profit-maximizing quantity of the factor is _______ unit(s).

Explain and show graphically why a firm in perfect competition will hire labor where the MRP of labor is equal to the MFC of labor.Be sure to discuss in your answer exactly what MFC and MRP are.

Perfectly competitive factor and output markets are similar in that when both are present both generate:

In terms of labor supply, the substitution effect of a higher wage causes a(n):

Use the following to answer question(s): -(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is _______ unit(s).