Question 1

Table 18-9
 
-Refer to Table 18-9.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5 in a competitive market and the firm pays each unit of labor a wage equal to $320 per day.How many units of labor should the firm hire to maximize profit?

Accepted Answer

A)   2 units
B)   3 units
C)   4 units
D)   5 unitsE) B) and C)
F) A) and C)

Question 2

In 2010,the total income of all U.S.residents was approximately $120 billion.

Accepted Answer

A) True 
 B)False

Question 3

Along the horizontal axis of the production function we typically measure

Accepted Answer

A)   revenue.
B)   the marginal product of the input.
C)   the quantity of input.
D)   the quantity of output.E) All of the above
F) A) and D)

Question 4

Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 20 hours per week,but now she decides to work 16 hours per week in order to spend more time studying economics.For this price range,her labor supply curve is

Accepted Answer

A)   vertical.
B)   horizontal.
C)   upward sloping.
D)   backward sloping.E) B) and D)
F) None of the above

Question 5

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

Accepted Answer

A)   the supply of labor.
B)   the final product price.
C)   wages.
D)   the demand for labor.E) A) and D)
F) None of the above

Question 6

If one were to consider a university as a business,the computers in the computer labs would be regarded by economists as

Accepted Answer

A)   technology flows.
B)   mechanization flows.
C)   part of the university's stock of capital.
D)   a flow of services from the university's stock of capital.E) None of the above
F) B) and C)

Question 7

In 2010,the total income of all U.S.residents was approximately $15 trillion.

Accepted Answer

A) True 
 B)False

Question 8

Figure 18-9
 
-Refer to Figure 18-9.If the apple pickers start working fewer hours because they are taking more vacation time,the equilibrium wage will

Accepted Answer

A)   fall below w1 due to a shift in demand.
B)   fall below w1 due to a shift in supply.
C)   rise above w1 due to a shift in demand.
D)   rise above w1 due to a shift in supply.E) A) and B)
F) B) and D)

Question 9

Consider the market for capital equipment.Suppose the value of the marginal product of capital equipment increases.Holding all else constant,the equilibrium quantity of capital equipment will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   It is not possible to determine what will happen to the equilibrium quantity of capital equipment.E) B) and C)
F) All of the above

Question 10

Which of the following statements is correct?

Accepted Answer

A)   The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
B)   The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
C)   The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
D)   Both a and b are correct.E) None of the above
F) B) and C)

Question 11

If the value of the marginal product of labor exceeds the wage,then the firm could

Accepted Answer

A)   increase profit by hiring additional labor.
B)   increase profit by reducing the amount of labor hired.
C)   increase revenue by lowering output.
D)   reduce total cost by hiring additional workers.E) B) and C)
F) All of the above

Question 12

Figure 18-9
 
-Refer to Figure 18-9.If the marginal product of labor falls and the price of apples remains unchanged,
(i) the value of the marginal product of labor will fall.
(ii) the quantity of labor demanded will increase above L1.
(iii) the labor supply curve will remain unchanged.

Accepted Answer

A)   (i)  and (ii)  only
B)   (ii)  and (iii)  only
C)   (i)  and (iii)  only
D)   (i) , (ii) , and (iii) E) None of the above
F) B) and D)

Question 13

As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

Accepted Answer

A)   Both the equilibrium wage and quantity increase.
B)   Both the equilibrium wage and quantity decrease.
C)   The equilibrium wage increases, and the equilibrium quantity decreases.
D)   The equilibrium wage decreases, and the equilibrium quantity increases.E) B) and C)
F) A) and B)

Question 15

Table 18-6
 
-Refer to Table 18-6.It is apparent from this table that increasing marginal product

Accepted Answer

A)   occurs only after the first worker is hired.
B)   occurs only after the second worker is hired.
C)   occurs only after the third worker is hired.
D)   never occurs.E) B) and D)
F) A) and D)

Question 16

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 bakery profession becomes less attractive to young women and men because of news reports documenting health risks,what happens in the market for bakers?

Accepted Answer

A)   Demand increases from D1 to D2.
B)   Demand decreases from D2 to D1.
C)   Supply increases from S1 to S2.
D)   Supply decreases from S2 to S1.E) None of the above
F) A) and B)

Question 17

Table 18-5
 
-Refer to Table 18-5.What is the value for the cell labeled CC?

Accepted Answer

A)   650
B)   600
C)   100
D)   50E) B) and C)
F) C) and D)

Question 18

An increase in the value of the marginal product of labor has the effect of increasing the

Accepted Answer

A)   demand for labor.
B)   wage.
C)   quantity of labor employed.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 19

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

Accepted Answer

A)   increasing.
B)   constant.
C)   decreasing.
D)   negative.E) B) and C)
F) A) and D)

Question 20

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

Accepted Answer

A)   increasing.
B)   constant.
C)   decreasing.
D)   negative.E) A) and C)
F) A) and B)

Exam 18: The Market For the Factors of Production.

Along the horizontal axis of the production function we typically measure

Correct Answer
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Figure 18-9 -Refer to Figure 18-9.If the marginal product of labor falls and the price of apples remains unchanged, (i) the value of the marginal product of labor will fall. (ii) the quantity of labor demanded will increase above L1. (iii) the labor supply curve will remain unchanged.

Correct Answer
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Which of the following statements is correct?

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

Correct Answer
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An increase in the value of the marginal product of labor has the effect of increasing the

Correct Answer
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Consider the market for capital equipment.Suppose the value of the marginal product of capital equipment increases.Holding all else constant,the equilibrium quantity of capital equipment will

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

Correct Answer
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As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Correct Answer
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Table 18-5 -Refer to Table 18-5.What is the value for the cell labeled CC?

Correct Answer
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In 2010,the total income of all U.S.residents was approximately $15 trillion.

Correct Answer
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Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 20 hours per week,but now she decides to work 16 hours per week in order to spend more time studying economics.For this price range,her labor supply curve is

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

Correct Answer
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In 2010,the total income of all U.S.residents was approximately $120 billion.

Correct Answer
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If the value of the marginal product of labor exceeds the wage,then the firm could

Correct Answer
verified

Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

Correct Answer
verified

Table 18-6 -Refer to Table 18-6.It is apparent from this table that increasing marginal product

Correct Answer
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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 bakery profession becomes less attractive to young women and men because of news reports documenting health risks,what happens in the market for bakers?

Correct Answer
verified

If one were to consider a university as a business,the computers in the computer labs would be regarded by economists as

Correct Answer
verified

Figure 18-9 -Refer to Figure 18-9.If the apple pickers start working fewer hours because they are taking more vacation time,the equilibrium wage will

Correct Answer
verified

Exam 18: The Market For the Factors of Production.

Along the horizontal axis of the production function we typically measure

Correct AnswerverifiedShow Answer

Figure 18-9 -Refer to Figure 18-9.If the marginal product of labor falls and the price of apples remains unchanged, (i) the value of the marginal product of labor will fall. (ii) the quantity of labor demanded will increase above L1. (iii) the labor supply curve will remain unchanged.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An increase in the value of the marginal product of labor has the effect of increasing the

Correct AnswerverifiedShow Answer

Consider the market for capital equipment.Suppose the value of the marginal product of capital equipment increases.Holding all else constant,the equilibrium quantity of capital equipment will

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As the number of concrete workers in the United States falls,the wage paid to the remaining concrete workers will necessarily fall as well.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 18-5 -Refer to Table 18-5.What is the value for the cell labeled CC?

Correct AnswerverifiedShow Answer

In 2010,the total income of all U.S.residents was approximately $15 trillion.

Correct AnswerverifiedShow Answer

Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 20 hours per week,but now she decides to work 16 hours per week in order to spend more time studying economics.For this price range,her labor supply curve is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In 2010,the total income of all U.S.residents was approximately $120 billion.

Correct AnswerverifiedShow Answer

If the value of the marginal product of labor exceeds the wage,then the firm could

Correct AnswerverifiedShow Answer

Suppose that the labor market for life guards is initially in equilibrium.Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool.What happens to the equilibrium wage and quantity of life guards?

Correct AnswerverifiedShow Answer

Table 18-6 -Refer to Table 18-6.It is apparent from this table that increasing marginal product

Correct AnswerverifiedShow Answer

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 bakery profession becomes less attractive to young women and men because of news reports documenting health risks,what happens in the market for bakers?

Correct AnswerverifiedShow Answer

If one were to consider a university as a business,the computers in the computer labs would be regarded by economists as

Correct AnswerverifiedShow Answer

Figure 18-9 -Refer to Figure 18-9.If the apple pickers start working fewer hours because they are taking more vacation time,the equilibrium wage will

Correct AnswerverifiedShow Answer

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