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Exam 18: The Market for the Factors of Production

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Question 71

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Figure 18-3 -Refer to Figure 18-3.What is the marginal product of the fourth worker?

A) 1 unit
B) 2 units
C) 3.75 units
D) 15 units

E) A) and B)
F) A) and C)

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Question 72

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Does the movement of workers from other countries to the U.S.affect the demand for labor in the U.S. ,or does it affect the supply of labor in the U.S.?

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The movement of work...

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Question 73

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When a labor market experiences a surplus of labor,there is downward pressure on

Capital,labor,and land

Both theory and history point to a close relationship between increases in

Figure 18-6 -Refer to Figure 18-6.The graph above illustrates the market for bakers who make homemade breads and breakfast pastries.If the wages paid to wedding cake bakers decrease,what happens in the market for bread bakers?

Figure 18-8 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 18-8.Which of the following is a possible explanation of the shift of the labor-demand curve from D₁ to D₂?

José receives a pay raise at his part-time job from $9 to $11 per hour.He used to work 12 hours per week,but now he decides to work 15 hours per week.For this price range,his labor supply curve is

Suppose that a rare virus infects and kills a significant percentage of the population.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and the rents earned by landowners?

Technological advances can cause the labor demand curve to shift.

Figure 18-4 -Refer to Figure 18-4.The graph above illustrates the market for bakers who make homemade breads and breakfast pastries.If bakeries adopt new labor-saving technologies,what happens in the market for bakers?

Factor markets for baked goods are influenced by the

Capital owners are compensated according to the value of the marginal product of that capital.

Suppose that a new invention decreases the marginal productivity of labor,shifting labor demand to the left.Such an invention would be an example of

Table 18-7 Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.Harold's production function is detailed in the table below. -Refer to Table 18-7.If Harold pays his workers $250 per day and sells his cranberries for $5 per bushel,what is the maximum number of workers that he will hire?

Profit maximization by firms ensures that the equilibrium wage always equals the value of the marginal product of capital.

Along the vertical axis of the production function we typically measure

Table 18-2 -Refer to Table 18-2.The following table shows the number of calculators that can be assembled per week by various numbers of workers.If the price per calculator in a perfectly competitive product market is $8,how many workers would the firm employ if the weekly wage rate is $800?

Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor.Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?

Table 18-3 -Refer to Table 18-3.For Firm C,the marginal product of labor is