Question 1

Which one of the following will lead NOT lead to a shift in the labor supply curve?

Accepted Answer

A)  an increase in the rate of immigration 
B)  an increase in the opportunity cost of working 
C)  an increase in wage. 
D)  an increase in number of workers retiring

Question 2

The contribution of an additional worker to the total revenue of a firm is known as the:

Accepted Answer

A)  marginal product. 
B)  marginal revenue product. 
C)  total product. 
D)  marginal revenue.

Question 3

All else equal, an increase in the overall price level of goods and services in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

Accepted Answer

A)  an increase; an increase 
B)  a decrease; an increase 
C)  an increase; a decrease 
D)  a decrease; a decrease

Question 4

The four different types of factors of production include, land, labor, capital, and:

Accepted Answer

A)  intermediate goods. 
B)  raw material. 
C)  entrepreneurship. 
D)  natural resources.

Question 5

In the nearly six decades between 1950 and 2018, female participation in the labor force increased from 34 percent to 57 percent. The impact of this can be shown though a _____ shift in the labor _____ curve.

Accepted Answer

A)  leftward; supply 
B)  rightward; supply 
C)  rightward; demand 
D)  leftward; demand

Question 6

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the marginal product of the fourth worker is 6, then we can conclude that the price of the good is:
 ​

Accepted Answer

A)  $2. 
B)  $3. 
C)  $4. 
D)  $5.

Question 7

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many workers will be unemployed?
​
Minimum Wage and Job Loss II

Accepted Answer

A)  300 
B)  600 
C)  900 
D)  1,200

Question 8

Which of the following can increase simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Accepted Answer

A)  an increase in the productivity of workers 
B)  an increase in the rate of immigration 
C)  a decrease in the price level of goods 
D)  a decrease in the number of workers of retiring age

Question 9

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A?
Figure: Equilibrium in the Labor Market

Accepted Answer

A)  an increase in the rate of immigration into an economy 
B)  an increase in the productivity of workers in the economy 
C)  a decrease in the rate of immigration in the economy 
D)  a decrease in the productivity of workers in the economy

Question 10

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the hourly wage of workers is $10 per hour, then the firm will hire _____ workers.
​

Accepted Answer

A)  three 
B)  four 
C)  five 
D)  six

Question 11

A firm in a perfectly competitive market is looking to hire an additional worker. The price of the good produced by the firm is $6, and the marginal product of the worker is 12. Therefore, the marginal revenue product of the worker is:

Accepted Answer

A)  $2. 
B)  $6. 
C)  $18. 
D)  $72.

Question 12

All else equal, an increase in the marginal product of workers will lead to _____ in the marginal revenue product of the firm, and the firm will hire _____ workers.

Accepted Answer

A)  a decrease; fewer 
B)  a decrease; more 
C)  an increase; fewer 
D)  an increase; more

Question 13

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Accepted Answer

A)  an increase in the productivity of workers 
B)  an increase in the rate of immigration 
C)  a decrease in the price level of goods 
D)  a decrease in the number of workers of retiring age

Question 14

Which one of the following will NOT lead to a rightward shift of the labor supply curve?

Accepted Answer

A)  a rise urbanization 
B)  a rise in immigration 
C)  a fall in the opportunity cost of work 
D)  a fall in the price of the good labor produces

Question 15

A firm's labor demand curve is equivalent to its marginal _____ curve.

Accepted Answer

A)  product 
B)  revenue 
C)  revenue product 
D)  cost

Question 16

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed are new entrants into the labor market who were not present at the competitive wage?
​
Minimum Wage and Job Loss II

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  400

Question 17

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed were previously employed and lost their job after the hike in minimum wage?
​
Minimum Wage and Job Loss II

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  400

Question 18

Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the marginal product of the fourth unit of capital is 5, then we can conclude that the price of the good is:

Accepted Answer

A)  $2. 
B)  $3. 
C)  $4. 
D)  $5.

Question 19

A local Starbucks needs exactly five baristas to make coffee during a shift. In this case, the demand curve for baristas is perfectly _____, and an increase in minimum wage above the equilibrium wage will lead to _____ in the wage of workers.

Accepted Answer

A)  elastic; no change 
B)  elastic; an increase 
C)  inelastic; no change 
D)  inelastic; an increase

Question 20

Stewarton is a beach town with many restaurants. In the summer, tourists often visit Stewarton, which creates an increased demand for these restaurants. Given this, which of the following will NOT be true in the labor market for restaurant workers in the summer?

Accepted Answer

A)  There will be an increase in the demand for labor. 
B)  The equilibrium quantity of workers who are hired will increase. 
C)  The equilibrium wage of restaurant workers will decrease. 
D)  The equilibrium quantity of labor supplied will increase.

Exam 11: Factor Markets

Which one of the following will lead NOT lead to a shift in the labor supply curve?

The contribution of an additional worker to the total revenue of a firm is known as the:

All else equal, an increase in the overall price level of goods and services in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

The four different types of factors of production include, land, labor, capital, and:

In the nearly six decades between 1950 and 2018, female participation in the labor force increased from 34 percent to 57 percent. The impact of this can be shown though a _ shift in the labor _ curve.

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the marginal product of the fourth worker is 6, then we can conclude that the price of the good is:

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many workers will be unemployed? Minimum Wage and Job Loss II

Which of the following can increase simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A? Figure: Equilibrium in the Labor Market

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the hourly wage of workers is $10 per hour, then the firm will hire _____ workers.

A firm in a perfectly competitive market is looking to hire an additional worker. The price of the good produced by the firm is $6, and the marginal product of the worker is 12. Therefore, the marginal revenue product of the worker is:

All else equal, an increase in the marginal product of workers will lead to _ in the marginal revenue product of the firm, and the firm will hire _ workers.

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Which one of the following will NOT lead to a rightward shift of the labor supply curve?

A firm's labor demand curve is equivalent to its marginal _____ curve.

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed are new entrants into the labor market who were not present at the competitive wage? Minimum Wage and Job Loss II

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed were previously employed and lost their job after the hike in minimum wage? Minimum Wage and Job Loss II

A local Starbucks needs exactly five baristas to make coffee during a shift. In this case, the demand curve for baristas is perfectly _, and an increase in minimum wage above the equilibrium wage will lead to _ in the wage of workers.

Stewarton is a beach town with many restaurants. In the summer, tourists often visit Stewarton, which creates an increased demand for these restaurants. Given this, which of the following will NOT be true in the labor market for restaurant workers in the summer?

Exam 11: Factor Markets

Which one of the following will lead NOT lead to a shift in the labor supply curve?

The contribution of an additional worker to the total revenue of a firm is known as the:

All else equal, an increase in the overall price level of goods and services in the economy will lead to _____ in the quantity of labor hired and _____ in the wage rate.

The four different types of factors of production include, land, labor, capital, and:

In the nearly six decades between 1950 and 2018, female participation in the labor force increased from 34 percent to 57 percent. The impact of this can be shown though a _____ shift in the labor _____ curve.

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many workers will be unemployed? ​ Minimum Wage and Job Loss II

Which of the following can increase simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Use Figure: Equilibrium in the Labor Market. Which one of the following can shift the equilibrium from point D to point A? Figure: Equilibrium in the Labor Market

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the hourly wage of workers is $10 per hour, then the firm will hire _____ workers. ​

A firm in a perfectly competitive market is looking to hire an additional worker. The price of the good produced by the firm is $6, and the marginal product of the worker is 12. Therefore, the marginal revenue product of the worker is:

All else equal, an increase in the marginal product of workers will lead to _____ in the marginal revenue product of the firm, and the firm will hire _____ workers.

Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?

Which one of the following will NOT lead to a rightward shift of the labor supply curve?

A firm's labor demand curve is equivalent to its marginal _____ curve.

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed are new entrants into the labor market who were not present at the competitive wage? ​ Minimum Wage and Job Loss II

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed were previously employed and lost their job after the hike in minimum wage? ​ Minimum Wage and Job Loss II

A local Starbucks needs exactly five baristas to make coffee during a shift. In this case, the demand curve for baristas is perfectly _____, and an increase in minimum wage above the equilibrium wage will lead to _____ in the wage of workers.

Stewarton is a beach town with many restaurants. In the summer, tourists often visit Stewarton, which creates an increased demand for these restaurants. Given this, which of the following will NOT be true in the labor market for restaurant workers in the summer?

All else equal, an increase in the overall price level of goods and services in the economy will lead to _ in the quantity of labor hired and _ in the wage rate.

In the nearly six decades between 1950 and 2018, female participation in the labor force increased from 34 percent to 57 percent. The impact of this can be shown though a _ shift in the labor _ curve.

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many workers will be unemployed? Minimum Wage and Job Loss II

Use Table: Marginal Revenue Product. The table lists the number of workers and the marginal revenue product per hour that is generated by each worker for a firm in a perfectly competitive market. If the hourly wage of workers is $10 per hour, then the firm will hire _____ workers.

All else equal, an increase in the marginal product of workers will lead to _ in the marginal revenue product of the firm, and the firm will hire _ workers.

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed are new entrants into the labor market who were not present at the competitive wage? Minimum Wage and Job Loss II

Use Figure: Minimum Wage and Job Loss II. If the government sets a minimum wage of $12 per hour, then how many of the total workers who are unemployed were previously employed and lost their job after the hike in minimum wage? Minimum Wage and Job Loss II

A local Starbucks needs exactly five baristas to make coffee during a shift. In this case, the demand curve for baristas is perfectly _, and an increase in minimum wage above the equilibrium wage will lead to _ in the wage of workers.