Question 1

Table 18-10
Consider the following daily production data for Caroline's Cookies,Inc.Caroline's sells cookies for $2.50 each and pays the workers a wage of $325 per day.
 
-Refer to Table 18-10.Suppose that there is a technological advance that allows Caroline's employees to produce more cookies than they could before.Because of this change,the firm's

Accepted Answer

A)   demand for labor shifts right.
B)   demand for labor shifts left.
C)   supply of labor shifts right.
D)   supply of labor shifts left.E) B) and D)
F) A) and C)

Question 2

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

Accepted Answer

A)   $300
B)   $200
C)   $100
D)   -$100E) All of the above
F) A) and C)

Question 3

Figure 18-9 1 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." class="answers-bank-image d-inline" rel="preload" >
-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) A) and C)

Question 4

Rosie's Flower Shop sells floral arrangements for $20 each.If Rosie hires 10 workers,she can sell 600 arrangements per week.If she hires 11 workers,she can sell 650 arrangements per week.Rosie pays each of her workers $400 per week.Which of the following is correct?

Accepted Answer

A)   For the 11th worker,the marginal profit is $1,000.
B)   For the 11th worker,the marginal revenue product is $1,000.
C)   The firm is maximizing its profit.
D)   If the firm is employing 11 workers,then its profit would increase if it cut back to 10 workers.E) A) and B)
F) None of the above

Question 5

Which of the following is an example of a factor of production?

Accepted Answer

A)   rent
B)   interest
C)   land
D)   Social Security paymentsE) B) and C)
F) A) and B)

Question 6

Bill is a laborer.What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?

Accepted Answer

Bill's wage is equal...

Question 7

When the wages paid to government economists increase,the labor supply curve for academic economists

Accepted Answer

A)   shifts to the left.
B)   shifts to the right.
C)   will become backward-sloping.
D)   will not change.E) A) and B)
F) All of the above

Question 8

Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.As such,Harold much decide (i) 
How many cranberries to sell.
(ii) 
What price to charge for his cranberries.
(iii) 
What wages to pay his workers.
(iv) 
How many workers to hire.

Accepted Answer

A)   (i) only
B)   (ii) and (iii) only
C)   (i) and (iv) only
D)   (i) , (ii) , (iii) ,and (iv) E) A) and B)
F) All of the above

Question 9

Which of the following is an example of a firm's derived demand?

Accepted Answer

A)   The wage that a worker earns is a function of her human capital.
B)   A firm's demand for college textbook study guide authors is inseparably linked to the supply of college textbooks.
C)   Factors that increase the demand for labor will increase the equilibrium wage.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 10

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

Accepted Answer

A)   vertical.
B)   horizontal.
C)   upward sloping.
D)   backward sloping.E) A) and D)
F) C) and D)

Question 11

Which of the following would increase the demand for labor? (i) 
A decrease in the output price
(ii) 
An increase in the output price
(iii) 
A labor-saving technological advance
(iv) 
A labor-augmenting technological advance

Accepted Answer

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

Question 12

Consider the market for university economics professors.Suppose the opportunity cost of going to graduate school to get a Ph.D.in economics decreases for many individuals.Suppose it generally takes about five years to get a Ph.D.in economics.Holding all else constant,in five years the equilibrium wage for university economics professors will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   It is not possible to determine what will happen to the equilibrium wage.E) A) and B)
F) A) and C)

Question 13

For a worker,the opportunity cost of an hour of leisure

Accepted Answer

A)   rises by $5 when her wage rises by $5 per hour.
B)   falls by $5 when her wage rises by $5 per hour.
C)   is the same for a corporate chief executive officer as it is for a garbage-collection worker.
D)   is determined by factors that are unrelated to her hourly wage.E) None of the above
F) A) and B)

Question 14

The U.S.economy experienced a significant slowdown in productivity growth that lasted from about 1973 to about __________.

Accepted Answer

The answer of The U.S.economy experienced a significant slowdown in...

Question 15

Labor supply curves are always upward sloping.

Accepted Answer

A) True 
 B)False

Question 16

The basic tools of supply and demand apply to

Accepted Answer

A)   both markets for goods and services and markets for labor services.
B)   markets for goods and services but not to markets for labor services.
C)   markets for goods and services but not to markets for factors of production.
D)   all markets except those in which demand is derived demand.E) All of the above
F) C) and D)

Question 17

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-augmenting technology,the equilibrium wage

Accepted Answer

A)   and the equilibrium quantity of labor will rise.
B)   and the equilibrium quantity of labor will fall.
C)   will rise,and the equilibrium quantity of labor will fall.
D)   will fall,and the equilibrium quantity of labor will rise.E) B) and C)
F) A) and C)

Question 18

An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields,all else equal.

Accepted Answer

A) True 
 B)False

Question 19

Diminishing marginal product affects the shape of the production function in what way?

Accepted Answer

A)   The slope of the production function decreases as the quantity of input increases.
B)   The production function becomes steeper as the quantity of input increases.
C)   The production function slopes downward.
D)   The production function is horizontal beyond a certain quantity of input.E) All of the above
F) C) and D)

Question 20

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. 1 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 events would most likely explain the shift of the labor-demand curve from D1 to D2? A)  The price of automobiles decreased. B)  A large number of immigrants entered the automobile-worker market. C)  A technological advance increased the marginal product of automobile workers. D)  All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-8.Which of the following events would most likely explain the shift of the labor-demand curve from D1 to D2?

Accepted Answer

A)   The price of automobiles decreased.
B)   A large number of immigrants entered the automobile-worker market.
C)   A technological advance increased the marginal product of automobile workers.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Exam 18: The Market for the Factors of Production

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following is an example of a firm's derived demand?

Correct Answer
verified

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-augmenting technology,the equilibrium wage

Correct Answer
verified

Bill is a laborer.What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?

Correct Answer
verified
Bill's wage is equal...
View Answer

Which of the following is an example of a factor of production?

Correct Answer
verified

The U.S.economy experienced a significant slowdown in productivity growth that lasted from about 1973 to about __________.

Correct Answer
verified

Correct Answer
verified

Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.As such,Harold much decide (i) How many cranberries to sell. (ii) What price to charge for his cranberries. (iii) What wages to pay his workers. (iv) How many workers to hire.

Correct Answer
verified

The basic tools of supply and demand apply to

Correct Answer
verified

When the wages paid to government economists increase,the labor supply curve for academic economists

Correct Answer
verified

For a worker,the opportunity cost of an hour of leisure

Correct Answer
verified

Which of the following would increase the demand for labor? (i) A decrease in the output price (ii) An increase in the output price (iii) A labor-saving technological advance (iv) A labor-augmenting technological advance

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

Labor supply curves are always upward sloping.

Correct Answer
verified

Correct Answer
verified

Diminishing marginal product affects the shape of the production function in what way?

Correct Answer
verified

Rosie's Flower Shop sells floral arrangements for $20 each.If Rosie hires 10 workers,she can sell 600 arrangements per week.If she hires 11 workers,she can sell 650 arrangements per week.Rosie pays each of her workers $400 per week.Which of the following is correct?

Correct Answer
verified

Correct Answer
verified

An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields,all else equal.

Correct Answer
verified

Exam 18: The Market for the Factors of Production

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

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 16 hours per week,but now she decides to work 20 hours per week.For this price range,her labor supply curve is

Correct AnswerverifiedShow Answer

Which of the following is an example of a firm's derived demand?

Correct AnswerverifiedShow Answer

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-augmenting technology,the equilibrium wage

Correct AnswerverifiedShow Answer

Bill is a laborer.What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?

Correct AnswerverifiedBill's wage is equal...View AnswerShow Answer

Which of the following is an example of a factor of production?

Correct AnswerverifiedShow Answer

The U.S.economy experienced a significant slowdown in productivity growth that lasted from about 1973 to about __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Harold owns a cranberry bog in which he grows cranberries.Harold's farm is a competitive,profit-maximizing firm.As such,Harold much decide (i) How many cranberries to sell. (ii) What price to charge for his cranberries. (iii) What wages to pay his workers. (iv) How many workers to hire.

Correct AnswerverifiedShow Answer

The basic tools of supply and demand apply to

Correct AnswerverifiedShow Answer

When the wages paid to government economists increase,the labor supply curve for academic economists

Correct AnswerverifiedShow Answer

For a worker,the opportunity cost of an hour of leisure

Correct AnswerverifiedShow Answer

Which of the following would increase the demand for labor? (i) A decrease in the output price (ii) An increase in the output price (iii) A labor-saving technological advance (iv) A labor-augmenting technological advance

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

Labor supply curves are always upward sloping.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Diminishing marginal product affects the shape of the production function in what way?

Correct AnswerverifiedShow Answer

Rosie's Flower Shop sells floral arrangements for $20 each.If Rosie hires 10 workers,she can sell 600 arrangements per week.If she hires 11 workers,she can sell 650 arrangements per week.Rosie pays each of her workers $400 per week.Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields,all else equal.

Correct AnswerverifiedShow Answer

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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Bill's wage is equal...
View 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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