Question 1

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

Accepted Answer

A)  rise at a rate higher than the interest rate. 
B)  fall at a rate greater than the interest rate. 
C)  rise at a rate less than the interest rate. 
D)  rise at a rate equal to the interest rate. 
E)  fall at a rate equal to the interest rate. 
A)  rise at a rate higher than the interest rate. 
B)  fall at a rate greater than the interest rate. 
C)  rise at a rate less than the interest rate. 
D)  rise at a rate equal to the interest rate. 
E)  fall at a rate equal to the interest rate.

Question 2

The value of marginal product of labor

Accepted Answer

A)  always increases as more labor is hired. 
B)  is constant as long as each worker is paid the same wage rate. 
C)  declines only if each worker is paid more than the previous worker. 
D)  at some point declines as more workers are hired. 
E)  at first decreases and then increases as more workers are hired. 
A)  always increases as more labor is hired. 
B)  is constant as long as each worker is paid the same wage rate. 
C)  declines only if each worker is paid more than the previous worker. 
D)  at some point declines as more workers are hired. 
E)  at first decreases and then increases as more workers are hired.

Question 3

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

Accepted Answer

The supply of low-skilled labor decrease

Question 4

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fourth worker is ________ per hour.

Accepted Answer

A)  $240 
B)  $220 
C)  $20 
D)  $12 
E)  $24 
A)  $240 
B)  $220 
C)  $20 
D)  $12 
E)  $24

Question 5

Why is the supply of an nonrenewable natural resource perfectly elastic?

Accepted Answer

The supply of an nonrenewable natural re

Question 6

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

Accepted Answer

A)  The firm is employing the profit-maximizing quantity of labor. 
B)  Too much labor is currently employed and the firm will lay off some workers. 
C)  Too few workers are currently employed and the firm will hire more workers. 
D)  The firm should shut down and produce nothing. 
E)  More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor. 
A)  The firm is employing the profit-maximizing quantity of labor. 
B)  Too much labor is currently employed and the firm will lay off some workers. 
C)  Too few workers are currently employed and the firm will hire more workers. 
D)  The firm should shut down and produce nothing. 
E)  More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.

Question 7

The figure above shows a labor market in which a union has formed.
-Labor unions' support for import restrictions represents an attempt to shift the

Accepted Answer

A)  labor demand curve from LD0 to LD1. 
B)  labor demand curve from LD1 to LD0. 
C)  labor supply curve from LS0 to LS1. 
D)  labor supply curve from LS1 to LS0. 
E)  None of the above answers is correct. 
A)  labor demand curve from LD0 to LD1. 
B)  labor demand curve from LD1 to LD0. 
C)  labor supply curve from LS0 to LS1. 
D)  labor supply curve from LS1 to LS0. 
E)  None of the above answers is correct.

Question 8

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

Accepted Answer

A)  $240 
B)  $220 
C)  $24 
D)  $10 
E)  $12 
A)  $240 
B)  $220 
C)  $24 
D)  $10 
E)  $12

Question 9

Which of the following factors have a derived demand?
i.labor
ii.capital
iii.raw materials

Accepted Answer

A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only 
A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only

Question 10

If a firm uses new technology that increases its demand for labor,the firm's demand for labor curve

Accepted Answer

A)  shifts leftward. 
B)  shifts rightward only if the demand for labor is elastic. 
C)  shifts rightward no matter if the demand for labor is elastic or inelastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the demand for labor is inelastic. 
A)  shifts leftward. 
B)  shifts rightward only if the demand for labor is elastic. 
C)  shifts rightward no matter if the demand for labor is elastic or inelastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the demand for labor is inelastic.

Question 11

-The above figure represents the market for professional minor-league baseball umpires.
a.If umpires are offered $90 a game,what is the quantity of umpires supplied?
b.If umpires are offered $90 a game,is there a surplus or shortage of games umpired? What does the shortage or surplus equal?
c.What is the equilibrium wage rate and quantity of umpires?

Accepted Answer

a.The quantity of umpires supplied is 20

Question 12

If the supply of labor increases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

A)  rises; increases 
B)  might rise, fall, or not change; increases 
C)  rises; might increase, decrease, or not change 
D)  falls; increases 
E)  falls; does not change 
A)  rises; increases 
B)  might rise, fall, or not change; increases 
C)  rises; might increase, decrease, or not change 
D)  falls; increases 
E)  falls; does not change

Question 13

The value of marginal product of labor curve

Accepted Answer

A)  is upward sloping because firms want to hire more workers to increase production. 
B)  shows the price of a factor of production multiplied by the amount of the factor employed. 
C)  is the same as a firm's supply of labor curve. 
D)  is downward sloping if each additional worker's marginal product is decreasing. 
E)  is U-shaped. 
A)  is upward sloping because firms want to hire more workers to increase production. 
B)  shows the price of a factor of production multiplied by the amount of the factor employed. 
C)  is the same as a firm's supply of labor curve. 
D)  is downward sloping if each additional worker's marginal product is decreasing. 
E)  is U-shaped.

Question 14

Which of the following curves is most inelastic?
A) the supply of land
B) the supply of labor for an individual worker
C) the supply of labor for all workers
D) the demand for capital
E) the demand for labor

Accepted Answer

The answer of Which of the following curves is most...

Question 15

What factors shift the demand for labor curve? Briefly describe the effect of each.

Accepted Answer

Three factors shift the demand for labor

Question 16

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

Accepted Answer

A renewable natural resource can be used

Question 17

If the wage rate increases,a firm's demand for labor curve

Accepted Answer

A)  does not shift, and there is no movement along it. 
B)  shifts leftward. 
C)  shifts rightward only if the elasticity of demand for labor is elastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the elasticity of demand for labor is inelastic. 
A)  does not shift, and there is no movement along it. 
B)  shifts leftward. 
C)  shifts rightward only if the elasticity of demand for labor is elastic. 
D)  does not shift, but there is a movement along it. 
E)  shifts rightward only if the elasticity of demand for labor is inelastic.

Question 18

Which of the following is a renewable resource?
i.a forest of pine trees grown by Georgia-Pacific
ii.oil reserves in Saudi Arabia
iii.the Everglades

Accepted Answer

A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only 
A)  i and ii 
B)  ii and iii 
C)  i and iii 
D)  i, ii, and iii 
E)  i only

Question 19

If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate,then the

Accepted Answer

A)  owners will sell all that they can today. 
B)  owners will sell nothing today. 
C)  consumers will demand nothing today. 
D)  owners will sell their entire supply. 
E)  current price will probably fall. 
A)  owners will sell all that they can today. 
B)  owners will sell nothing today. 
C)  consumers will demand nothing today. 
D)  owners will sell their entire supply. 
E)  current price will probably fall.

Question 20

A rise in the minimum wage increases the demand for union labor because this policy change

Accepted Answer

A)  lowers the wage rate paid to union labor. 
B)  raises the productivity of union labor. 
C)  lowers the cost of a substitute for union labor. 
D)  lowers the productivity of union labor. 
E)  raises the cost of a substitute for union labor. 
A)  lowers the wage rate paid to union labor. 
B)  raises the productivity of union labor. 
C)  lowers the cost of a substitute for union labor. 
D)  lowers the productivity of union labor. 
E)  raises the cost of a substitute for union labor.

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

The value of marginal product of labor

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fourth worker is ________ per hour.

Why is the supply of an nonrenewable natural resource perfectly elastic?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

The figure above shows a labor market in which a union has formed. -Labor unions' support for import restrictions represents an attempt to shift the

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

Which of the following factors have a derived demand? i.labor ii.capital iii.raw materials

If a firm uses new technology that increases its demand for labor,the firm's demand for labor curve

If the supply of labor increases,then the equilibrium wage rate and the equilibrium quantity of labor .

The value of marginal product of labor curve

Which of the following curves is most inelastic? A) the supply of land B) the supply of labor for an individual worker C) the supply of labor for all workers D) the demand for capital E) the demand for labor

What factors shift the demand for labor curve? Briefly describe the effect of each.

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

If the wage rate increases,a firm's demand for labor curve

Which of the following is a renewable resource? i.a forest of pine trees grown by Georgia-Pacific ii.oil reserves in Saudi Arabia iii.the Everglades

If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate,then the

A rise in the minimum wage increases the demand for union labor because this policy change

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

Exam 19: Markets for Factors of Production

According to the Hotelling Principle,the price of a nonrenewable resource is expected to

The value of marginal product of labor

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fourth worker is ________ per hour.

Why is the supply of an nonrenewable natural resource perfectly elastic?

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53.Which of the following is correct?

The figure above shows a labor market in which a union has formed. -Labor unions' support for import restrictions represents an attempt to shift the

-The table above shows a the total product schedule of Piece a' Pi,a producer of pizza in a nearby college town.Suppose workers are paid $12 per hour and the price per pizza is $10.The value of marginal product of the fifth worker is ________ per hour.

Which of the following factors have a derived demand? i.labor ii.capital iii.raw materials

If a firm uses new technology that increases its demand for labor,the firm's demand for labor curve

If the supply of labor increases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

The value of marginal product of labor curve

Which of the following curves is most inelastic? A) the supply of land B) the supply of labor for an individual worker C) the supply of labor for all workers D) the demand for capital E) the demand for labor

What factors shift the demand for labor curve? Briefly describe the effect of each.

Discuss the difference between renewable and nonrenewable resources.Given an example of each.

If the wage rate increases,a firm's demand for labor curve

Which of the following is a renewable resource? i.a forest of pine trees grown by Georgia-Pacific ii.oil reserves in Saudi Arabia iii.the Everglades

If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate,then the

A rise in the minimum wage increases the demand for union labor because this policy change

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Economic Inequality

Filters

If the supply of labor increases,then the equilibrium wage rate and the equilibrium quantity of labor .