Question 1

The demand curve for labor is the same as the firm's

Accepted Answer

A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve. 
A)  marginal revenue curve. 
B)  marginal cost curve. 
C)  value of marginal product of labor curve. 
D)  wage rate curve. 
E)  supply of output curve.

Question 2

Why do baseball players make so much money,while kindergarten teachers in private schools make so much less? In your answer,discuss the value of marginal product and the actions of profit-maximizing firms.

Accepted Answer

Let us consider the value of the margina

Question 3

The figure above shows a firm's VMP curve.
-Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

Accepted Answer

A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question. 
A)  remains $12.. 
B)  becomes $6. 
C)  becomes $24. 
D)  becomes $30. 
E)  More information about the supply of labor is needed to answer the question.

Question 4

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

Accepted Answer

The value of marginal product curve for

Question 5

If the price of capital rises,in the long run the demand for labor

Accepted Answer

A)  definitely increases. 
B)  definitely decreases. 
C)  definitely is unaffected. 
D)  could increase or decrease, depending on the change in the scale of production. 
E)  changes only if the supply of labor changes. 
A)  definitely increases. 
B)  definitely decreases. 
C)  definitely is unaffected. 
D)  could increase or decrease, depending on the change in the scale of production. 
E)  changes only if the supply of labor changes.

Question 6

Unions ________ free trade and ________ a higher minimum wage.

Accepted Answer

A)  favor; favor 
B)  are neutral toward; oppose 
C)  favor; oppose 
D)  oppose; favor 
E)  oppose; oppose 
A)  favor; favor 
B)  are neutral toward; oppose 
C)  favor; oppose 
D)  oppose; favor 
E)  oppose; oppose

Question 7

As a factor of production,any of the gifts of nature are called

Accepted Answer

A)  land. 
B)  labor. 
C)  capital. 
D)  entrepreneurial ability. 
E)  physical capital. 
A)  land. 
B)  labor. 
C)  capital. 
D)  entrepreneurial ability. 
E)  physical capital.

Question 8

Which of the following is NOT a factor of production?

Accepted Answer

A)  labor 
B)  capital 
C)  entrepreneurship 
D)  bonds 
E)  land 
A)  labor 
B)  capital 
C)  entrepreneurship 
D)  bonds 
E)  land

Question 9

The demand for a factor of production is called a derived demand because it is derived from

Accepted Answer

A)  the demand for goods and services produced by the factor of production. 
B)  a table of specific prices and quantities. 
C)  the ideas of an entrepreneur. 
D)  a financial market. 
E)  the supply of the factor of production. 
A)  the demand for goods and services produced by the factor of production. 
B)  a table of specific prices and quantities. 
C)  the ideas of an entrepreneur. 
D)  a financial market. 
E)  the supply of the factor of production.

Question 10

Of the following,a union is LEAST likely to support

Accepted Answer

A)  an increase in the minimum wage rate. 
B)  laws that restrict immigration into the country. 
C)  on-the-job training that makes their members more productive. 
D)  laws that increase the quantity of the nation's imports. 
E)  programs that boost the demand for the goods and services their members produce. 
A)  an increase in the minimum wage rate. 
B)  laws that restrict immigration into the country. 
C)  on-the-job training that makes their members more productive. 
D)  laws that increase the quantity of the nation's imports. 
E)  programs that boost the demand for the goods and services their members produce.

Question 11

In order to spend more time with her children,a young mother decides to work fewer hours as her pay increases.What does her labor supply curve look like?

Accepted Answer

The young mother's labor supply curve is

Question 12

A change in the wage rate

Accepted Answer

A)  shifts the supply of labor curve so that the supply becomes more elastic. 
B)  shifts the supply of labor curve leftward. 
C)  shifts the supply of labor curve rightward. 
D)  does not shift the supply of labor curve but instead leads to a movement along it. 
E)  either shifts the supply of labor curve leftward or rightward depending whether the demand for labor curve shifts rightward or leftward. 
A)  shifts the supply of labor curve so that the supply becomes more elastic. 
B)  shifts the supply of labor curve leftward. 
C)  shifts the supply of labor curve rightward. 
D)  does not shift the supply of labor curve but instead leads to a movement along it. 
E)  either shifts the supply of labor curve leftward or rightward depending whether the demand for labor curve shifts rightward or leftward.

Question 13

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

Accepted Answer

A)  demand for land. 
B)  quantity demanded of land. 
C)  supply of land. 
D)  elasticity of supply for land. 
E)  quantity supplied of land. 
A)  demand for land. 
B)  quantity demanded of land. 
C)  supply of land. 
D)  elasticity of supply for land. 
E)  quantity supplied of land.

Question 14

If the price of the firm's output increases,the demand for labor curve

Accepted Answer

A)  shifts rightward. 
B)  shifts leftward. 
C)  remains constant. 
D)  could shift rightward, leftward, or remain constant. 
E)  might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic. 
A)  shifts rightward. 
B)  shifts leftward. 
C)  remains constant. 
D)  could shift rightward, leftward, or remain constant. 
E)  might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic.

Question 15

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

Accepted Answer

If a company stopped adding workers at t

Question 16

A producer's supply of a nonrenewable natural resource is

Accepted Answer

A)  always decreasing because the resource is always being used. 
B)  perfectly inelastic. 
C)  perfectly elastic. 
D)  not relevant because nonrenewable resources are used only once. 
E)  determined by the value of the resource's marginal product. 
A)  always decreasing because the resource is always being used. 
B)  perfectly inelastic. 
C)  perfectly elastic. 
D)  not relevant because nonrenewable resources are used only once. 
E)  determined by the value of the resource's marginal product.

Question 17

If the supply of labor decreases,then the equilibrium wage rate ________ and equilibrium employment ________.

Accepted Answer

A)  does not change; decreases 
B)  rises; increases 
C)  rises; decreases 
D)  falls; increases 
E)  falls; decreases 
A)  does not change; decreases 
B)  rises; increases 
C)  rises; decreases 
D)  falls; increases 
E)  falls; decreases

Question 18

The medical field requires doctors to pass exams in order to earn a license to practice medicine.This requirement ________ doctors' salaries because ________.

Accepted Answer

A)  increases; the supply of doctors decreases and fewer doctors are employed 
B)  increases; the supply of doctors increases and as a result they are better trained 
C)  increases; the demand for doctors decreases because they charge higher prices 
D)  decreases; the supply of doctors decreases due to the tougher requirements 
E)  decreases; fewer people go to doctors because of the high prices 
A)  increases; the supply of doctors decreases and fewer doctors are employed 
B)  increases; the supply of doctors increases and as a result they are better trained 
C)  increases; the demand for doctors decreases because they charge higher prices 
D)  decreases; the supply of doctors decreases due to the tougher requirements 
E)  decreases; fewer people go to doctors because of the high prices

Question 19

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.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 20

-The table below has the marginal product schedule for Nick's Pizza.
a.If pizza sells for $8 each,complete the last column of the table.
   
b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

Accepted Answer

@#IMG-DLM& 
a.The completed table is abo

The demand curve for labor is the same as the firm's

Why do baseball players make so much money,while kindergarten teachers in private schools make so much less? In your answer,discuss the value of marginal product and the actions of profit-maximizing firms.

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

If the price of capital rises,in the long run the demand for labor

Unions free trade and a higher minimum wage.

As a factor of production,any of the gifts of nature are called

Which of the following is NOT a factor of production?

The demand for a factor of production is called a derived demand because it is derived from

Of the following,a union is LEAST likely to support

In order to spend more time with her children,a young mother decides to work fewer hours as her pay increases.What does her labor supply curve look like?

A change in the wage rate

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

If the price of the firm's output increases,the demand for labor curve

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

A producer's supply of a nonrenewable natural resource is

If the supply of labor decreases,then the equilibrium wage rate and equilibrium employment .

The medical field requires doctors to pass exams in order to earn a license to practice medicine.This requirement doctors' salaries because .

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

-The table below has the marginal product schedule for Nick's Pizza. a.If pizza sells for $8 each,complete the last column of the table. b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

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

The demand curve for labor is the same as the firm's

Why do baseball players make so much money,while kindergarten teachers in private schools make so much less? In your answer,discuss the value of marginal product and the actions of profit-maximizing firms.

The figure above shows a firm's VMP curve. -Suppose that the price of the product doubles and the marginal product of the workers does not change.As a result,the value of marginal product of the second worker

What is the relationship between a firm's value of marginal product curve of labor and its demand for labor curve? Explain why this relationship exists.

If the price of capital rises,in the long run the demand for labor

Unions ________ free trade and ________ a higher minimum wage.

As a factor of production,any of the gifts of nature are called

Which of the following is NOT a factor of production?

The demand for a factor of production is called a derived demand because it is derived from

Of the following,a union is LEAST likely to support

In order to spend more time with her children,a young mother decides to work fewer hours as her pay increases.What does her labor supply curve look like?

A change in the wage rate

The rental rate of land is the payment for the resource land.The lower the rental rate,the greater the

If the price of the firm's output increases,the demand for labor curve

Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?

A producer's supply of a nonrenewable natural resource is

If the supply of labor decreases,then the equilibrium wage rate ________ and equilibrium employment ________.

The medical field requires doctors to pass exams in order to earn a license to practice medicine.This requirement ________ doctors' salaries because ________.

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

-The table below has the marginal product schedule for Nick's Pizza. a.If pizza sells for $8 each,complete the last column of the table. b.If Nick can hire workers at the going wage rate of $16 an hour,how many workers does Nick hire?

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

Unions free trade and a higher minimum wage.

If the supply of labor decreases,then the equilibrium wage rate and equilibrium employment .

The medical field requires doctors to pass exams in order to earn a license to practice medicine.This requirement doctors' salaries because .