Question 1

In the market for labor:

Accepted Answer

A)  firms are the suppliers.
B)  the price in the market is the interest rate.
C)  workers are the suppliers.
D)  there is never disequilibrium.E) C) and D)
F) B) and D)

Question 2

Economists refer to the pattern of income that people derive from different factors of production as the:

Accepted Answer

A)  factor price.
B)  factor distribution of income.
C)  factor stream of income.
D)  expected future factor value.E) A) and B)
F) A) and C)

Question 3

The table shown displays the production schedule for a bakery in a competitive market that sells loaves of bread for $5 each.

If each worker is paid $60 per day how many workers should the bakery hire?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) All of the above
F) C) and D)

Question 4

What is human capital?

Accepted Answer

A)  The amount of capital that is operated by workers in a firm
B)  The total productivity of workers in a firm
C)  The number of workers a firm employs
D)  The set of skills, knowledge, experience, and talent that determine the productivity of workersE) B) and D)
F) B) and C)

Question 5

If a producer who hires labor in a competitive labor market decides to purchase a new, automated machine that completes the work of 30 employees, we would expect the labor _______ curve in that market to shift to the _______.

Accepted Answer

A)  supply; left
B)  demand; left
C)  supply; right
D)  demand; rightE) B) and C)
F) None of the above

Question 6

The labor supply price effect describes the _______ in the quantity of labor supplied in response to a _______ wage.

Accepted Answer

A)  decrease; higher
B)  increase; lower
C)  increase; higher
D)  None of these are correct.E) A) and D)
F) A) and C)

Question 7

Markets that require workers with similar human capital:

Accepted Answer

A)  compete for the same workers, who can interchange one type of employment for another.
B)  often have similar wages, because they employ similar workers.
C)  are more connected than others.
D)  All of these are true.E) B) and D)
F) All of the above

Question 8

A monopsony is an example of:

Accepted Answer

A)  a buyer holding market power.
B)  a seller holding market power.
C)  an efficient market with no market power.
D)  a single seller holding all market power.E) B) and C)
F) None of the above

Question 9

If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:

Accepted Answer

A)  increase.
B)  decrease.
C)  remain the same.
D)  be negative.E) A) and B)
F) B) and C)

Question 10

For any competitive labor market, changes that increase the opportunity cost of work will _______ labor supply and shift the labor supply curve to the _______.

Accepted Answer

A)  increase; right
B)  decrease; right
C)  decrease; left
D)  increase; leftE) All of the above
F) None of the above

Question 11

In general, as wages go up:

Accepted Answer

A)  people are willing to work less.
B)  people are willing to work more.
C)  the opportunity cost of working increases.
D)  the benefit of working goes down.E) C) and D)
F) None of the above

Question 12

The evidence on how minimum wage laws work in the real world:

Accepted Answer

A)  is mixed.
B)  clearly shows that such price floors cause unemployment.
C)  clearly shows that there is simply a transfer of surplus from employer to worker.
D)  None of these are true.E) B) and C)
F) A) and B)

Question 13

The table shown displays the production schedule for a bakery in a competitive market that sells cookies for $2 each.

If each worker is paid $90 per day, how many workers should the bakery hire?

Accepted Answer

A)  1
B)  4
C)  6
D)  9E) B) and D)
F) All of the above

Question 14

The production function represents the:

Accepted Answer

A)  relative values of the inputs and modes of production.
B)  relative costs of the inputs across various modes of production.
C)  relationship between the quantity of inputs and the quantity of outputs.
D)  relationship between the cost of the inputs and the revenue generated by outputs.E) None of the above
F) C) and D)

Question 15

Which of the following is not an example of human capital?

Accepted Answer

A)  Physical strength
B)  An eye for decorating and color
C)  A PhD in chemistry
D)  An automotive manualE) B) and C)
F) A) and D)

Question 16

The rental price of capital is the:

Accepted Answer

A)  interest paid on loans.
B)  equilibrium wage.
C)  value of the expected flow of income gained from ownership.
D)  amount producers pay to use a factor of production.E) B) and C)
F) A) and D)

Exam 16: The Facts of Production

The production function represents the:

Correct Answer
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Which of the following is not an example of human capital?

Correct Answer
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In the market for labor:

Correct Answer
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The evidence on how minimum wage laws work in the real world:

Correct Answer
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The labor supply price effect describes the _ in the quantity of labor supplied in response to a _ wage.

Correct Answer
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For any competitive labor market, changes that increase the opportunity cost of work will _ labor supply and shift the labor supply curve to the _.

Correct Answer
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If a producer who hires labor in a competitive labor market decides to purchase a new, automated machine that completes the work of 30 employees, we would expect the labor _ curve in that market to shift to the _.

Correct Answer
verified

Economists refer to the pattern of income that people derive from different factors of production as the:

Correct Answer
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The rental price of capital is the:

Correct Answer
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In general, as wages go up:

Correct Answer
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If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:

Correct Answer
verified

The table shown displays the production schedule for a bakery in a competitive market that sells cookies for $2 each. If each worker is paid $90 per day, how many workers should the bakery hire?

Correct Answer
verified

What is human capital?

Correct Answer
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Markets that require workers with similar human capital:

Correct Answer
verified

A monopsony is an example of:

Correct Answer
verified

The table shown displays the production schedule for a bakery in a competitive market that sells loaves of bread for $5 each. If each worker is paid $60 per day how many workers should the bakery hire?

Correct Answer
verified

Exam 16: The Facts of Production

The production function represents the:

Correct AnswerverifiedShow Answer

Which of the following is not an example of human capital?

Correct AnswerverifiedShow Answer

In the market for labor:

Correct AnswerverifiedShow Answer

The evidence on how minimum wage laws work in the real world:

Correct AnswerverifiedShow Answer

The labor supply price effect describes the _______ in the quantity of labor supplied in response to a _______ wage.

Correct AnswerverifiedShow Answer

For any competitive labor market, changes that increase the opportunity cost of work will _______ labor supply and shift the labor supply curve to the _______.

Correct AnswerverifiedShow Answer

If a producer who hires labor in a competitive labor market decides to purchase a new, automated machine that completes the work of 30 employees, we would expect the labor _______ curve in that market to shift to the _______.

Correct AnswerverifiedShow Answer

Economists refer to the pattern of income that people derive from different factors of production as the:

Correct AnswerverifiedShow Answer

The rental price of capital is the:

Correct AnswerverifiedShow Answer

In general, as wages go up:

Correct AnswerverifiedShow Answer

If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:

Correct AnswerverifiedShow Answer

The table shown displays the production schedule for a bakery in a competitive market that sells cookies for $2 each. If each worker is paid $90 per day, how many workers should the bakery hire?

Correct AnswerverifiedShow Answer

What is human capital?

Correct AnswerverifiedShow Answer

Markets that require workers with similar human capital:

Correct AnswerverifiedShow Answer

A monopsony is an example of:

Correct AnswerverifiedShow Answer

The table shown displays the production schedule for a bakery in a competitive market that sells loaves of bread for $5 each. If each worker is paid $60 per day how many workers should the bakery hire?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The labor supply price effect describes the _ in the quantity of labor supplied in response to a _ wage.

Correct Answer
verified

For any competitive labor market, changes that increase the opportunity cost of work will _ labor supply and shift the labor supply curve to the _.

Correct Answer
verified

If a producer who hires labor in a competitive labor market decides to purchase a new, automated machine that completes the work of 30 employees, we would expect the labor _ curve in that market to shift to the _.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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