Question 1

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) A) and B)
F) None of the above

Question 2

Which of the following statements is correct?

Accepted Answer

A)   The value of the marginal product curve is the labor demand curve for competitive,profit-maximizing firms.
B)   A competitive,profit-maximizing firm hires workers up to the point where the value of the marginal product of labor equals the wage.
C)   By hiring labor up to the point where the value of the marginal product of labor equals the wage,the firm is producing where price equals marginal cost.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 3

Paul is the owner of Paul's Popcorn Palace.Paul is a profit-maximizing owner whose firm operates in a competitive market.An additional worker costs Paul $200 and has a marginal productivity of 40 canisters of popcorn.Assuming no other variable costs,what is the marginal cost of a popcorn?

Accepted Answer

A)   $200
B)   $8
C)   $5
D)   There is insufficient information available to answer this question.E) A) and C)
F) A) and D)

Question 4

Which of the following would not shift a market labor supply curve to the right?

Accepted Answer

A)   a decrease in the wage paid to workers in a competing market
B)   labor-augmenting technology
C)   a change in worker tastes so that workers want to retire later
D)   an increase in immigrationE) All of the above
F) A) and B)

Question 5

Which of the following statements is correct? An individual worker's labor supply curve

Accepted Answer

A)   can never be backward sloping.
B)   slopes backward if that person responds to a higher wage by taking fewer hours of leisure per week.
C)   slopes backward if that person responds to a higher opportunity cost of leisure by working fewer hours per week.
D)   slopes upward if that person works the same number of hours per week,regardless of the opportunity cost of leisure.E) A) and D)
F) A) and C)

Question 6

A competitive,profit-maximizing pays its workers a wage of $294 per day.The marginal product of the last worker is 35 units of output.What is the firm's marginal cost of producing its last unit of output?

Accepted Answer

Using the profit-max...

Question 7

The value of the marginal product of capital can be calculated as the market price of the good multiplied by the marginal product of capital.

Accepted Answer

A) True 
 B)False

Question 8

Suppose medical research provides evidence that eating bananas provides far greater health benefits than was previously thought.The resulting increase in the demand for bananas

Accepted Answer

A)   increases the marginal product of banana pickers for any given number of banana pickers.
B)   increases the value of the marginal product of banana pickers for any given number of banana pickers.
C)   increases the supply of banana pickers.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 9

Over time,carpenters become aware of more attractive employment opportunities outside of carpentry.Does this development affect the demand for carpenters,or does it affect the supply of carpenters?

Accepted Answer

The change in altern...

Question 10

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 $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the second worker?

Accepted Answer

A)   $80
B)   $400
C)   $6,400
D)   $32,000E) A) and B)
F) B) and C)

Question 11

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. 
-Refer to Figure 18-1.The marginal product of the second worker is

Accepted Answer

A)   90 units of output.
B)   105 units of output.
C)   210 units of output.
D)   330 units of output.E) B) and D)
F) C) and D)

Question 12

A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers.Describe the effect of the flood on the marginal productivity of land,labor,and capital.How would the flood affect the price of inputs? Provide some examples.

Accepted Answer

The flood would increase the marginal pr...

Question 13

Stock dividends and interest payments are examples of factors of production.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure.

Accepted Answer

A) True 
 B)False

Question 16

Table 18-1
 
-Refer to Table 18-1.What is the marginal product of the third worker?

Accepted Answer

A)   7
B)   8
C)   25
D)   75E) B) and C)
F) None of the above

Question 17

Figure 18-7 1 = $20 and W2 = $18,and the market is always in equilibrium.A shift of the labor supply curve from S1 to S2 would A)  increase the value of the marginal product of labor by $2. B)  decrease the value of the marginal product of labor by $2. C)  decrease the value of the marginal product of labor by more than $2. D)  not change the value of the marginal product of labor." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 18-7.Assume W1 = $20 and W2 = $18,and the market is always in equilibrium.A shift of the labor supply curve from S1 to S2 would

Accepted Answer

A)   increase the value of the marginal product of labor by $2.
B)   decrease the value of the marginal product of labor by $2.
C)   decrease the value of the marginal product of labor by more than $2.
D)   not change the value of the marginal product of labor.E) All of the above
F) None of the above

Question 18

If Firm X is a competitive firm in the market for labor,it has little influence over the wage it pays its employees.

Accepted Answer

A) True 
 B)False

Question 19

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. 
-Refer to Figure 18-1.Suppose the firm hires each unit of labor for $700 per week,and each unit of output sells for $9.How many workers will the firm hire to maximize its profit?

Accepted Answer

A)   2
B)   3
C)   4
D)   5E) None of the above
F) B) and D)

Question 20

An increase in immigration will lower the equilibrium wage,all else held constant.

Accepted Answer

A) True 
 B)False

Exam 18: The Market for the Factors of Production

Paul is the owner of Paul's Popcorn Palace.Paul is a profit-maximizing owner whose firm operates in a competitive market.An additional worker costs Paul $200 and has a marginal productivity of 40 canisters of popcorn.Assuming no other variable costs,what is the marginal cost of a popcorn?

Correct Answer
verified

Over time,carpenters become aware of more attractive employment opportunities outside of carpentry.Does this development affect the demand for carpenters,or does it affect the supply of carpenters?

Correct Answer
verified
The change in altern...
View Answer

Which of the following would not shift a market labor supply curve to the right?

Correct Answer
verified

An increase in immigration will lower the equilibrium wage,all else held constant.

Correct Answer
verified

A competitive,profit-maximizing pays its workers a wage of $294 per day.The marginal product of the last worker is 35 units of output.What is the firm's marginal cost of producing its last unit of output?

Correct Answer
verified
Using the profit-max...
View Answer

Which of the following statements is correct? An individual worker's labor supply curve

Correct Answer
verified

A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers.Describe the effect of the flood on the marginal productivity of land,labor,and capital.How would the flood affect the price of inputs? Provide some examples.

Correct Answer
verified
The flood would increase the marginal pr...
View Answer

Table 18-1 -Refer to Table 18-1.What is the marginal product of the third worker?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.Suppose the firm hires each unit of labor for $700 per week,and each unit of output sells for $9.How many workers will the firm hire to maximize its profit?

Correct Answer
verified

The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure.

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

If Firm X is a competitive firm in the market for labor,it has little influence over the wage it pays its employees.

Correct Answer
verified

Correct Answer
verified

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.The marginal product of the second worker is

Correct Answer
verified

Suppose medical research provides evidence that eating bananas provides far greater health benefits than was previously thought.The resulting increase in the demand for bananas

Correct Answer
verified

Figure 18-7 -Refer to Figure 18-7.Assume W₁ = $20 and W₂ = $18,and the market is always in equilibrium.A shift of the labor supply curve from S₁ to S₂ would

Correct Answer
verified

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

Stock dividends and interest payments are examples of factors of production.

Correct Answer
verified

The value of the marginal product of capital can be calculated as the market price of the good multiplied by the marginal product of capital.

Correct Answer
verified

Exam 18: The Market for the Factors of Production

Paul is the owner of Paul's Popcorn Palace.Paul is a profit-maximizing owner whose firm operates in a competitive market.An additional worker costs Paul $200 and has a marginal productivity of 40 canisters of popcorn.Assuming no other variable costs,what is the marginal cost of a popcorn?

Correct AnswerverifiedShow Answer

Over time,carpenters become aware of more attractive employment opportunities outside of carpentry.Does this development affect the demand for carpenters,or does it affect the supply of carpenters?

Correct AnswerverifiedThe change in altern...View AnswerShow Answer

Which of the following would not shift a market labor supply curve to the right?

Correct AnswerverifiedShow Answer

An increase in immigration will lower the equilibrium wage,all else held constant.

Correct AnswerverifiedShow Answer

A competitive,profit-maximizing pays its workers a wage of $294 per day.The marginal product of the last worker is 35 units of output.What is the firm's marginal cost of producing its last unit of output?

Correct AnswerverifiedUsing the profit-max...View AnswerShow Answer

Which of the following statements is correct? An individual worker's labor supply curve

Correct AnswerverifiedShow Answer

A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers.Describe the effect of the flood on the marginal productivity of land,labor,and capital.How would the flood affect the price of inputs? Provide some examples.

Correct AnswerverifiedThe flood would increase the marginal pr...View AnswerShow Answer

Table 18-1 -Refer to Table 18-1.What is the marginal product of the third worker?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.Suppose the firm hires each unit of labor for $700 per week,and each unit of output sells for $9.How many workers will the firm hire to maximize its profit?

Correct AnswerverifiedShow Answer

The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in the opportunity cost of leisure.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If Firm X is a competitive firm in the market for labor,it has little influence over the wage it pays its employees.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1.The marginal product of the second worker is

Correct AnswerverifiedShow Answer

Suppose medical research provides evidence that eating bananas provides far greater health benefits than was previously thought.The resulting increase in the demand for bananas

Correct AnswerverifiedShow Answer

Figure 18-7 -Refer to Figure 18-7.Assume W1 = $20 and W2 = $18,and the market is always in equilibrium.A shift of the labor supply curve from S1 to S2 would

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

Stock dividends and interest payments are examples of factors of production.

Correct AnswerverifiedShow Answer

The value of the marginal product of capital can be calculated as the market price of the good multiplied by the marginal product of capital.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The change in altern...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Using the profit-max...
View Answer

Correct Answer
verified

Correct Answer
verified
The flood would increase the marginal pr...
View 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Figure 18-7 -Refer to Figure 18-7.Assume W₁ = $20 and W₂ = $18,and the market is always in equilibrium.A shift of the labor supply curve from S₁ to S₂ would

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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